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Compromise Agreements - When is an Employee Non-Qualified For a Redundancy Entitlement?

If your employer has made your job redundant, you should expect to receive a redundancy entitlement. However, not everyone is qualified to receive such compensation. You have to look at your length of service and several other factors to understand how a redundancy package is offered. If you have not been given any redundancy entitlement, you have to know and understand why you were not qualified for one.

First and foremost, you have to be made redundant and not sacked to qualify for a redundancy entitlement. You must have been under the employment of the employer continuously for at least two years upon the date of dismissal. The redundancy package should be irrespective of the total hours of work you have rendered. If you have been dismissed only after more than a year of employment, you are not qualified for a redundancy entitlement. Instead, you could file for an unfair dismissal claim.

You would not be qualified for a redundancy entitlement if you are under 20 years old. At the same time, do not expect to get a payout if you have exceeded the normal retirement age or if you are more than 65 years old. All age-related factors for non-qualification for a redundancy package are regardless of the total length of your service to the employer.

If you are subject to a fixed-term employment contract wherein the employer has waived your redundancy rights, you would not be qualified for any redundancy entitlement. Employees who are subject to any permanent contract should be careful in accepting any alternative fixed-term employment contract from the employer because such a document usually includes a waiver clause that forfeits entitlement to a redundancy pay. Although such waivers of rights clauses are unlawful, employers still have the decision to require their temporary workers to sign contracts with such waivers.

You would also not be qualified for any entitlement if you have been guilty of any grievous misconduct that is stated in the employee handbook of the company. If you have accepted an offer from the employer for a suitable alternative work within the company, you also automatically set aside any redundancy entitlement you may have. No redundancy entitlement would also be given if there is a current industrial action during the time redundancy notice is served.

The time limit for submitting any redundancy claim from the employer is within six months after the date of employment termination. You would forfeit your right to any redundancy entitlement if you depart from your work before the redundancy notice is issued. However, you could agree with your employer to extend the notice period without compromising your redundancy pay.

Your acceptance of a compromise agreement offer from the employer would also disqualify you from a redundancy entitlement. However, such an offer usually comes with a hefty monetary package replacing the redundancy pay and including other premiums. You would be made to agree not to file for any redundancy claim or complaint regarding the terminated employment in the future. Thus, it would be important to hire a reliable, competent, and trustworthy employment solicitor to give you guidance as you explore and sign a compromise agreement.

About this Author

This is a resource for compromise agreement information specific for UK Law. For more information from compromie agreement solicitors please visit our website www.ukcompromiseagreements.co.uk.

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