Redundancy and settlement

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Richard Gregory

Consultant Solicitor

Phone 01264 353411


Tesco is the latest employer to have attracted speculation about job cuts. According to reports, the supermarket is finalising a restructure in a bid to save £1.5bn. It is feared that this could cost up to 9,000 workers their jobs.

Sadly, Tesco is not alone in facing difficult workforce decisions. Economic pressure and financial uncertainty is forcing employers everywhere to look at ways of cutting costs to maintain their commercial viability. It is a worrying time for people and communities. And, against the backdrop of losing a secure income, it is so important to make sure that your rights are protected.

The law recognises that employers must be allowed to make redundancies. However, it also sets stringent rules about how they must go about that. The employer has to act fairly and reasonably, from the way in which it identifies ‘at risk’ roles, to its search for alternative jobs for selected employees. The process can be tricky, and employers get caught out. In some situations employees may be able to bring claims including discrimination and unfair dismissal.

Aside from the procedural points, you should make sure that you will get your full financial entitlement on redundancy. Typically, an employer will ask an employee to sign a settlement agreement. It is at that point, if not before, that the detail of the deal you’ll be getting will be spelled out in all its detail, and you will have to get advice from your employment lawyer on what it all means. (The agreement will not be enforceable if you don’t.)

For help or assistance with redundancy or settlement agreements please call us on 01264 353 411, emailing or completing our Online Enquiry Form and we'll be happy to help.

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