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Northamptonshire Solicitors – Redundancy & Settlement Agreements

Reasons to choose Wilson Browne

Furlough will come to an end and with it comes huge uncertainty – for many workers, furlough has simply delayed what seemed inevitable: for others, it simply wasn’t an option.

COVID has taken its toll in terms of demand for many goods and services, and some jobs may simply not exist in the same form that they did before due to changes in how businesses operate or because of other external factors.

A simple guide to redundancy

Why use us?

1. We give transparent and jargon-free advice;
2. We have a practical, friendly and down to earth approach and always put your needs at the forefront;
3. Specialist employment law solicitors will handle the matter from start to finish.

Don’t just take our word for it…

Your service was excellent and I would highly recommend you to friends and family. Many thanks for your patience.

Mrs G, Coventry

I would like to take this opportunity to thank you and your team for all the help and guidance during this difficult process which lasted 4 weeks and took 6 proposals to finalise.  Your professionalism, skill and speed made it a pleasure for me to deal with Wilson Browne and I would certainly not hesitate to recommend your firm in future.

Glenn Ward

If I need a solicitor in the future Wilson Browne will be my first port of call , thank you for your time and attention in this settlement.


You can find out more from ACAS, which provides useful guidance, or you can refer to their Guide.

Redundancy encompasses three different types of situation

  • Business closure.
  • Workplace closure.
  • Reduction of the workforce.

Collective consultation

  • If a business is making 20 or more employees redundant over a period of 90 days or less, the business must:
    • inform and consult appropriate employee representatives.
    • notify the Department for Business, Innovation and Skills (BIS).
  • An employment tribunal can award up to 90 days’ pay for each employee if the business has not consulted adequately. The business can also be fined for failing to notify BIS.
  • The business should also ensure that it follows a fair procedure during the redundancy process (including consulting with employees properly) to minimise the possibility of claims for unfair dismissal.

Redundancy and unfair dismissal

  • Redundancy is a potentially fair reason for dismissal. However, a redundancy dismissal is likely to be unfair unless the business:
    • identifies an appropriate pool of employees for selection for redundancy.
    • consults with the individuals in the redundancy selection pool.
    • applies objective selection criteria to the employees in the redundancy selection pool.
    • considers suitable alternative employment where appropriate (subject to a trial period).
  • In certain circumstances, selecting an employee for redundancy will be automatically unfair. For example, selecting an employee:
    • for a reason connected to pregnancy;
    • because they refused to sign a working tie opt-out agreement; or
    • for reasons related to trade union membership or activities.

Alternatives to redundancy

  • At the start of a redundancy procedure, the business should consider whether it can avoid making compulsory redundancies or reduce the number of compulsory redundancies. For example, by:
    • suspending or restricting recruitment;
    • reducing or removing overtime opportunities;
    • not renewing contractors’ contracts; or
    • ceasing or reducing the use of agency workers.
  • If these steps are unavailable or insufficient, the business could also consider:
    • inviting potentially redundant employees to apply for suitable alternative vacancies;
    • inviting employees to volunteer for redundancy;
    • inviting employees to consider early retirement; or
    • temporarily laying off employees or reducing their hours.

Redundancy payments

  • Employees with at least two years continuous employment with the business at the point they are made redundant will be entitled to a statutory redundancy payment.
  • Some employees may also be entitled to an enhanced contractual redundancy payment, if their contract of employment or other documents provide for it.

Expert Settlement Agreement solicitors

As one of the leading Settlement Agreement solicitors in Northamptonshire, you’ll be in safe hands.  Our lawyers know how distressing it is when things don’t work out, so we’ll be right beside you to make the process as pain-free as possible.

With the job market being so competitive right now, you’ll want reassurance that you have been treated fairly and properly, which is why expert advice is needed.

A Settlement Agreement (formerly known as a compromise agreement) is a legally binding agreement between an employer and an employee where you (the employee) agree to settle your potential claims: in return, the employer will generally agree to pay financial compensation.

Settlement Agreements are typically associated with the ending of someone’s employment and are issued either shortly before or after the employment has ended (but they can also be used when employment is going to continue), and it is normal for the employer to contribute a sum of money which is typically enough to cover the cost of a typical Settlement Agreement.

Normally, the employee agrees not to pursue a potential claim against their employer or former employer, in return for compensation. To be binding, the employee must get independent legal advice before signing.

For more in-depth information, LOOK HERE