HR Articles

Settlement negotiations are generally subject to the 'without prejudice' rule. This means that evidence of genuine attempts to settle an existing dispute cannot be disclosed in tribunal or court proceedings.

When is senior executive is offered a ‘without prejudice’ severance package through a settlement agreement the primary focus of both parties is usually on the money. What is a reasonable (or sufficiently attractive) sum to pay to the executive in order to quickly resolve whatever destabilising situation has arisen?  

Recently, many employers have been considering restructuring their business, particularly in light of the global pandemic and various ways of working. We explore the considerations when undertaking a fair redundancy process.

The UK ferry operator P&O Ferries announced their decision on Thursday 17 March 2022 to cut 800 jobs with immediate effect. It was reported that workers were informed via a video message that “the company has made the decision that its vessels going forward will be primarily crewed by a third party crew provider” and that it was their “final day of employment”.

In the UK, it is not mandatory to have the COVID-19 vaccination for the general population. However, from 11 November 2021, individuals working in a Care Quality Commission (CQC) registered care home for adults in England will need to provide proof that they have had two doses of a COVID-19 vaccine to enable them to enter the premises (unless they are medically exempt). 

Speculators predicted a surge in redundancies this autumn as the Coronavirus Job Retention Scheme comes to an end on the 30th September. However, this surge doesn’t appear to be forthcoming.  

The furlough scheme has entered its final two months. The scheme has cost an estimated £64 billion and supported around 11.6 million jobs since its inception on 20 March 2020. At its peak in January of this year, it is estimated that some 5.1 million workers were on the furlough scheme.  

As pandemic-related government support for businesses starts to taper from the end of this month and with flexible furlough due to end altogether at the end of September, employers in some sectors will face difficult decisions impacting their workforce, including possible restructures and redundancies.

Twenty-three employees have won the maximum ‘Protective Award’ of 90 days extra pay because their employer failed to ‘inform and consult’ with them about their redundancies. Under S188 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULCRA), employers must follow collective consultation rules where it proposes to make over 20 redundancies in a 90 day period.

The first payment to include in a redundancy package is the statutory redundancy payment. This must be paid to all eligible employees and the amount is set by legislation. Other mandatory payments on termination would also include accrued but untaken annual leave and unpaid wages. Some employers, where the contract allows, may make a payment in lieu of notice.