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Redundancy

Collective Consultation

If you are in a position where you need to make more than 19 people redundant, there is a specific process which must be followed called collective consultation.

In this scenario, you must consider ways to avoid redundancies, inform employees as to the reasons for the redundancies, ensure dismissals are kept to a minimum and limit the effect on employees involved for example by offering them retraining opportunities etc.

If you are making 20-99 redundancies a consultation period with employees must start at least 30 days before any redundancy takes place. This increases to at least 45 days if you are making 100 or more redudancies.

Our Employment team can advise you on the steps you need to take to ensure that the process is fair and share best practice that we have gained over our years of advising other companies through the process.

Restrictive covenants

If you are parting company with an employee, particularly at management level, restrictive covenenants are often used to protect the business.

These can restrict the employee in relation to how and when they can contact your existing client base, potentially where they can work geographically i.e. restricting them from working in a certain area for a specific amount of time after they leave the business or what types of businesses they can/can't work for in the future.

Convenants generally last for a specific time frame and are used to prevent ex-employees from taking clients with them to another business.

Settlement Agreements

Settlement agreements can be used as another way of terminating employment. These are contracts agreed by both sides which infer responsibilities on both sides and stipulate obligations on both the employer and employee in relation to the end of the employment.

They can be used in various circumstances however specialist advice should be taken as to whether a redundancy or consultation process should be carried out instead.

Our Employment team has extensive experience of settlement agreements and can advise on when and how to use them to support the needs of the business.

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