Settlement Agreements In Redundancy

Settlement agreements, a legally binding agreement between an employer and an employee ending the employment relationship are generally invoked when a dispute arises and it has been decided to resolve the dispute without recourse to litigation and without the potential for the employee to take the employer to the tribunal or to court at a later date.

However, settlement agreements are often used by employers in a redundancy procedure and nearly always include an enhanced redundancy payment. A settlement agreement applied in a redundancy procedure enables the employer to save considerable time and avoid the normal drawn out redundancy procedure and the potential for employment tribunal claims making the settlement agreement option an attractive option.