Redundancy and Settlement Agreements


We know that for many employers considering the redundancy of any member of staff is a last resort. We often work with employers exploring possible alternatives to redundancy such as cost-cutting across the business, reviewing suppliers, and negotiating shorter working hours or reductions in pay.  In some cases, however redundancies are sometimes unavoidable.

A redundancy situation arises either when an employer restructures the business, closes or relocates its operations, or a there is change in business circumstances which reduces the number of staff it needs in its employment.

At vivoHR, we advise clients on the right procedures to follow when redundancy / redundancies become necessary. This includes advising on selecting the pool, identifying and applying redundancy criteria, reviewing alternative employment opportunities and fulfilling both individual and collective redundancy consultation obligations.

We provide our employer clients with clear, commercial advice that takes into account their business objectives whilst also meeting the complex legal requirements. Our advice helps to protect the business and minimise the risk of subsequent legal disputes e.g. for unfair dismissal.

Settlement Agreement

A Settlement Agreement is a legal document which an employer and employee enters into to regulate matters arising from an employment termination. A Settlement Agreement used to be known as a Compromise Agreement. By signing the Settlement Agreement the ex-employee waives their right bring an employment tribunal claim against the employer.

We can advise on the use of these in some circumstances and this if often when the redundancy situation is complex or contentious.

Managing the turbulence a redundancy situation can create

While protecting our client’s interests we are also very aware of the needs of the individual involved. The need to be able to depart with dignity and, with a reference to help the person on their way towards another role.

Redundancies can have a destabilising effect on a business. For those employees unaffected it is important that there is re-assurance and that communication is free flowing to maintain a motivated team going forwards. We can advise on effective ways to maintain business optimism in the weeks and months following such events. Contact us below and we’d be happy to speak to you.


Speak to an expert

Speak to an expert. One of the vivoHR team, either Sam, Rachel or Sarah-Louise are here to take your call on 01252 757359

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