Labour Research July 2021

Law Queries

Enhanced redundancy

Q. My employer’s policy is that if we are to get enhanced redundancy pay, we must sign an agreement stating we won’t bring a claim against them. Is this lawful?

A. While it is unlawful to require employees to waive their statutory rights, employers are free to negotiate contractual terms and conditions that go beyond those statutory minimum requirements.

This means if you are dismissed by reason of redundancy and you meet the qualifying criteria of two years’ continuous service, you will be entitled to a statutory redundancy payment whether or not you sign the agreement. But you will only receive the enhanced amount if you sign the agreement.