If an employer finds itself in a redundancy situation, it is almost inevitable that they will invite employees to volunteer for redundancy. Employers will often offer enhanced redundancy packages to entice its employees to leave their employment.
Where a voluntary exit is being finalised, an employer uses what is called a settlement agreement to record the terms which govern the termination of the employee’s employment.
The redundancy payment, commonly referred to in settlement agreements as an ex-gratia payment or termination payment, is included by the employer with the principal objective of obtaining the employee’s agreement not to pursue claims against the employer. There are often clauses included, relating to matters such as confidentiality, return of company property and employee warranties which are relied upon by the employer.
For a settlement agreement to be valid an employee must receive independent legal advice on the terms of the agreement, including their ability to pursue the claims specified in the agreement against the employer.
Usually, the employer will make a contribution to the employee’s legal fees. It can be the case that an employer’s contribution is of such a value that the employee does not have to pay anything towards the advice received.
At PGM solicitors, we offer timely appointments to provide the requisite advice to facilitate a quick turnaround for employees who have been presented with a settlement agreement in a redundancy situation or in other circumstances. Where the employer is contributing to the legal fees we will invoice the employer directly for the appropriate amount.
If you are issued with a settlement agreement, please do not hesitate to contact our specialist team on 01792 468684 or email enquiries@pgmsolicitors.co.uk.
