How our employment law team helped a local employer in Shoreham with multiple sign off Settlement Agreements (then known as Compromise Agreements), when restructuring and reducing its workforce by nearly 20 people.
The Managing Director contacted us after the company had been through the redundancy process and had reached agreements with the trade unions on agreed selection criteria. The company had offered Settlement Agreements with enhanced terms so that the employees did not have to work their notice and they would receive their notice pay as a tax-free payment.
Our team attended the employer’s office over two days to sign off the agreements at a reduced rate per Settlement Agreement. It transpired one employee should not have been selected as he was disabled within the meaning of the Equality Act and Reasonable Adjustments should have been applied to the scoring process. This should have been factored in when deciding who was to be made redundant.
All Settlement Agreements were signed off except in the case of the disabled employee who was reinstated by his employer.