Redundancy and Severance
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Call 0208 826 1200 Make an EnquiryExpert Redundancy and Severance Services & Advice
Redundancy and severance matters are often high-stakes, involving complex legal, financial, and employment considerations. Whether you are an employer managing workforce reductions or an employee facing redundancy, expert guidance is essential to navigate entitlements, obligations, and potential disputes.
We provide strategic, tailored advice that balances legal compliance with practical outcomes. Our approach is focused on clarity, precision, and enforceability, ensuring that agreements and settlements reflect statutory entitlements, contractual rights, and long-term implications for both parties.
Redundancy and Severance Services
We advise on all aspects of redundancy and severance, including:
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Statutory and contractual redundancy entitlements
Statutory and contractual redundancy entitlements
Understanding what is owed is the first step in any redundancy process. We calculate entitlements accurately to ensure fair treatment.
- Calculating statutory redundancy pay
- Reviewing contracts for enhanced redundancy rights
- Advising on notice periods and pay in lieu (PILON)
- Ensuring correct tax treatment of payments
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Negotiation and drafting of severance agreements
Negotiation and drafting of severance agreements
A well-drafted settlement agreement provides a clean break. We negotiate terms that protect your financial and professional future.
- Drafting robust Settlement Agreements
- Negotiating ex-gratia payments
- Agreeing on references and announcements
- Advising on confidentiality and post-termination restrictions
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Dispute resolution, including unfair dismissal and wrongful termination claims
Dispute resolution, including unfair dismissal and wrongful termination claims
If the redundancy process is flawed, legal action may be necessary. We represent clients in challenging unfair or sham redundancies.
- Identifying procedural unfairness in selection
- Challenging lack of consultation
- Pursuing claims for unfair dismissal
- Litigating wrongful dismissal for breach of contract
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Structured exit arrangements and financial planning considerations
Structured exit arrangements and financial planning considerations
Leaving a role involves more than just a final payment. We help structure exits that consider tax efficiency and share options.
- Advising on the tax-free status of termination payments
- Handling treatment of share options and bonuses
- Structuring phased payments or garden leave
- Advising on the impact on pension contributions
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Guidance for both employers and employees during workforce restructuring
Guidance for both employers and employees during workforce restructuring
We guide parties through the consultation process to ensure legal compliance. Our advice helps mitigate risk during difficult transitions.
- Advising employers on collective consultation rules
- Guiding employees through consultation meetings
- Assisting with selection pools and criteria
- Exploring alternatives to redundancy
Statutory and contractual redundancy entitlements
Understanding what is owed is the first step in any redundancy process. We calculate entitlements accurately to ensure fair treatment.
- Calculating statutory redundancy pay
- Reviewing contracts for enhanced redundancy rights
- Advising on notice periods and pay in lieu (PILON)
- Ensuring correct tax treatment of payments
Negotiation and drafting of severance agreements
A well-drafted settlement agreement provides a clean break. We negotiate terms that protect your financial and professional future.
- Drafting robust Settlement Agreements
- Negotiating ex-gratia payments
- Agreeing on references and announcements
- Advising on confidentiality and post-termination restrictions
Dispute resolution, including unfair dismissal and wrongful termination claims
If the redundancy process is flawed, legal action may be necessary. We represent clients in challenging unfair or sham redundancies.
- Identifying procedural unfairness in selection
- Challenging lack of consultation
- Pursuing claims for unfair dismissal
- Litigating wrongful dismissal for breach of contract
Structured exit arrangements and financial planning considerations
Leaving a role involves more than just a final payment. We help structure exits that consider tax efficiency and share options.
- Advising on the tax-free status of termination payments
- Handling treatment of share options and bonuses
- Structuring phased payments or garden leave
- Advising on the impact on pension contributions
Guidance for both employers and employees during workforce restructuring
We guide parties through the consultation process to ensure legal compliance. Our advice helps mitigate risk during difficult transitions.
- Advising employers on collective consultation rules
- Guiding employees through consultation meetings
- Assisting with selection pools and criteria
- Exploring alternatives to redundancy
Redundancy and Severance FAQs
Here are answers to some common questions about our legal services for Redundancy and Severance.
What is the difference between redundancy and unfair dismissal?
Redundancy is a valid reason for dismissal if the role is no longer needed. Unfair dismissal occurs if the redundancy wasn't genuine (e.g., your role still exists) or if the employer failed to follow a fair selection and consultation procedure.
How much is statutory redundancy pay?
It is based on your age, weekly pay (capped), and length of service. You must have worked for your employer for at least 2 years to qualify. Many contracts offer "enhanced" redundancy pay above this minimum.
What is a Settlement Agreement?
It is a legally binding contract where an employee agrees not to bring claims against the employer in exchange for a financial sum (usually higher than statutory redundancy). You must receive independent legal advice for it to be valid.
Do I have to pay tax on my redundancy payment?
Generally, the first £30,000 of a redundancy payment is tax-free. Any amount above this is subject to income tax. Notice pay and holiday pay are fully taxable. We advise on structuring payments tax-efficiently.
Can I be made redundant while on maternity leave?
You can, but strict protections apply. You have the right to be offered any suitable alternative vacancy before other colleagues. If this is ignored, the dismissal may be automatically unfair.
Still have questions?
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