As an employer, managing the requirements of a collective redundancy process – when a group of employees is asked to enter into settlement agreements – can be complex and demanding but there are some key ways that specialist lawyers here at Wards Solicitors can help.
Proposing a single law firm to advise all your employees – it is a legal requirement that every employee must receive independent legal advice before entering in to a settlement agreement – can make the whole process much more efficient for any employer looking at a mass redundancy programme.
Not only is the whole process more streamlined and efficient, individual employees can benefit from instructing a lawyer who is well acquainted with the facts and the wording of the agreement.
Getting it right
Settlement agreements are legally binding agreements between an employer and an employee. They are usually entered into shortly before or after the termination of a contract to allow a clean break, whereby the employee agrees to waive their right to make a claim against the employer in return for an agreed sum of compensation.
It is vital to ensure that settlement agreements comply with the relevant statutory requirements as not doing so could leave you as an employer exposed to a claim you thought had been settled.
It’s also important to remember that if you do nominate one legal firm to advise your employees, you must let your employees know of their right to instruct a different employment solicitor if they want to.
If you are an employer looking at a mass redundancy exercise and would like to talk to Wards Solicitors about advising your employees on settlement agreements, please contact Solicitor Associate James Murray on 01934 413535.