The Press and Journal (Aberdeen and Aberdeenshire)
How to respond to redundancy proposal from your employer
Redundancy is all too common at the moment. Aberdein Considine employment lawyer Karen Harvie offers up valuable help if the worst happens at your place of work
Due to the impact of oil price falls and coronavirus, many firms are making redundancies to keep their businesses afloat.
This has led to a rising number of people being offered what is known as a settlement agreement by their employer – but what exactly is it, how will it affect you and what do you need to know?
What is a settlement agreement?
It is essentially a way for you and your employer to part company on certain agreed terms.
Under these terms you will waive your right to bring any claims against your employer.
As well as being used to end your employment, settlement agreements can also be used to resolve an ongoing claim you have raised in a court or employment tribunal.
In the case of redundancy, they usually contain new obligations and conditions for any payments and/or other termination arrangements.
What does it mean if I sign it?
It is a binding agreement and you won’t be able to bring any claims against your employer.
You will normally also have agreed to some posttermination obligations, such as confidentiality clauses.
Do I need to sign it?
You don’t have to sign it unless you agree and there is often scope for negotiating terms. Ultimately, you can refuse to sign and bring a claim instead.
Depending on the circumstances, your employer may be able to sack you fairly anyway and if you turn down the offer, you might not receive a better one.
If you feel you’ve been treated badly you could still bring a claim after turning down a settlement but you may not be awarded as much money as you were offered initially.
Remember, the terms of a settlement must be agreed by both parties.
A solicitor will be able to advise you about what would be reasonable in your circumstances.
Do I need to take legal advice?
A settlement agreement is only valid if you have taken independent legal advice over its terms.
Who pays for the legal advice?
Although you are responsible for your solicitor’s fees, employers normally agree to make a contribution.
Depending on how much they offer to contribute and the complexity of advice you need, that may or may not be sufficient to cover all of your fees.
“Your employer may be able to sack you fairly anyway”