Redundancy, Dismissal and Settlement Agreements


What is dismissal?

Dismissal is when your employer ends your employment. If you are dismissed your employer must act reasonably and give you a valid reason for dismissing you, one that they can justify! Your employer does not necessarily have to give you notice, as they can often pay you in lieu of a notice period.

What is redundancy?

Redundancy is when you are dismissed because your job will no longer exist. If you are being made redundant and you have worked for the company for at least 2 years, your employer has to follow a fair redundancy process.

If your employer is making less than 20 people redundant, there is no set process that your employer has to follow. The only legal requirement is that there is a process and that it includes an individual consultation meeting between you and your employer to discuss the redundancy, prior to you being made redundant.

At this meeting your employer should explain why they need to make redundancies, why they are considering you and whether there are alternative jobs, within the company, that you could do.

If you are dismissed or made redundant you may receive a Settlement Agreement from your employer.

What is a Settlement Agreement?

A Settlement Agreement is a legally binding contract made between an employee and employer. It details the financial package that your employer is prepared to give you in return for you agreeing not to make any future claims against the Company.

If you have received a Settlement Agreement you will need to receive independent legal advice before you can sign it. Usually your employer will pay for you to take legal advice.

Independent Legal Advice

We recommend that you find a local employment solicitor who can act quickly on your behalf.

The Bird & Lovibond Employment Team has many years’ experience advising individuals who are facing a redundancy or dismissal situation.

Our lawyers will respond promptly to your enquiry enabling you to cost effectively understand your legal rights.

We will listen carefully to the circumstances that resulted in you receiving the Settlement Agreement and we will determine whether your employer has acted fairly and followed the correct procedure. We will advise on the options available to you, including whether there are grounds to claim that you have been unfairly dismissed, or if you have a case to claim increased compensation.

We will review the content of your Settlement Agreement and assess whether the terms you have been offered are reasonable. If appropriate we will negotiate with your employer, on your behalf, to get an increased settlement and more favourable terms.

For help and advice on a Settlement Agreement call 01895 256151 or email

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