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The types of redundancy And these are: Compulsory redundancy: It has two forms—staff reductions or a business shutting down entirely. Either way, it's an essential requirement to keep your business operating and must go ahead. Voluntary redundancy: Where you offer employees the chance to volunteer for dismissal.

Lastly to be a genuine redundancy the employer must have not reasonably been able to give the staff member other work either in the same business or with an associated entity. Termination that is not because of redundancy covers both when an employee resigns or is fired.

Employees made redundant are entitled to statutory redundancy pay and a notice period. In contrast, a settlement agreement is a negotiated contract between an employer and an employee that sets out the terms for ending the employment relationship.

redundancy agreement in British English (rɪˈdʌndənsɪ əˈɡriːmənt ) noun. an agreement over the sum of money given by an employer to an employee who has been made redundant. Collins English Dictionary.

A settlement agreement may be withdrawn at any point before it is signed. This is usually done if the circumstances change before signature. It is unusual for an employer to make and then rescind a settlement offer without a good reason.

Redundancy happens when your job disappears. It's not the same as being dismissed from your job for other reasons. When you're made redundant, you've done nothing wrong and no one is questioning your ability to do your job.

The rough 'rule of thumb' that we generally use to determine the value of a reasonable settlement agreement (in respect of compensation for termination of employment) is two to three months' gross salary (in addition to your notice pay, holiday pay etc., as outlined above).