Dismissal and redundancy

Redundancy and settlement agreements: employee rights overview

Fair redundancy process, statutory redundancy pay concepts, and how settlement agreements are used in redundancy exits.

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Fair process

Redundancy should follow a genuine business rationale and fair selection. Consultation, pooling, scoring, and consideration of alternatives are central. A settlement agreement may sit alongside or after a redundancy process.

Statutory redundancy pay

Eligible employees may have statutory redundancy entitlements based on age, service, and weekly pay caps. Contracts can improve on this. Check whether your package includes statutory amounts, notice, and holiday.

Settlement vs redundancy terms

Sometimes employers offer enhanced terms via settlement instead of following every process step—risk and context matter. Compare with voluntary redundancy scenarios.

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