Redundancy Advice Solicitors | Settlement Agreements

Understanding your redundancy rights

If you have been told your role is at risk of redundancy, you have important legal rights that your employer must observe. These include the right to a fair process, the right to be consulted, and the right to statutory redundancy pay if you have been employed for two or more years.

Many employers also offer enhanced redundancy packages above the statutory minimum, particularly to longer-serving or more senior employees. Understanding what you are entitled to — and what you may be able to negotiate — is essential before you agree to anything.

Statutory vs enhanced redundancy pay

Statutory redundancy pay is calculated based on your age, length of service, and weekly pay (subject to a government cap). Enhanced packages offered by employers can be significantly higher and may also include additional payments for notice, bonus, commission, and benefits.

Statutory redundancy pay — the legal minimum based on a fixed formula
Contractual enhanced pay — any additional amount in your contract or offered by your employer
Ex gratia payments — discretionary amounts offered as part of a negotiated exit
Notice pay — whether you work your notice or receive payment in lieu
Accrued holiday — any untaken leave must be paid on termination

Settlement agreements in redundancy situations

Employers frequently offer settlement agreements alongside redundancy packages. These agreements ask you to waive your right to bring employment tribunal claims in exchange for a financial payment — which is often tax-advantaged.

Before signing any settlement agreement, you are legally required to take independent legal advice. We provide this advice quickly and clearly, and in most cases your employer will cover our fees.

Is my redundancy genuine?

Not every redundancy is conducted fairly or lawfully. Common issues include: being selected unfairly for redundancy, a failure to follow a proper consultation process, being offered a role being made redundant while your actual job continues under a different title, or being selected for a protected reason such as pregnancy, disability, or having raised a grievance.

If you have concerns about the fairness of your redundancy, speak to us before signing anything. We can advise on whether you have grounds to challenge the process or negotiate a better outcome.

Collective redundancy — 20 or more employees

Where an employer proposes to make 20 or more employees redundant within 90 days, additional rules apply including mandatory collective consultation with employee representatives. Failure to follow these rules can result in a protective award of up to 90 days' pay per employee.

How we help

Reviewing your settlement agreement and advising on terms
Calculating whether your redundancy package is fair
Advising on whether the process has been followed correctly
Negotiating improved payments, notice, and reference wording
Signing the legal advice certificate required to make the agreement valid

Facing redundancy? We can help.