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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