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Chris Hadrill - specialist employment law solicitorThe news on 8 May that Barclays will be looking to make approximately 19,000 positions redundant by 2016 may lead to an increase in the use of settlement agreements and COT3 agreements over that period of time, according to Employment Law Solicitor Chris Hadrill.

The announcement that there will be a further swathe of redundancies at Barclays, with a total of 19,000 positions being made redundant around the world, signals that there may be an increase this year in the use of settlement agreements (formerly known as compromise agreements) and ACAS COT3 agreements to prevent workers that have been made redundant from bringing claims against Barclays (or any other employer that is making redundancies). More than half of the 19,000 job cuts will fall in the United Kingdom, with Barclays’ investment arm Barclays Capital set to lose 7,000 jobs from a workforce of 24,000 as it looks to move away from its traditional area of expertise in fixed income, currencies and commodities and towards advising customers and equities.

“Redundancy” occurs when an employer experiences one of three things and dismisses employees as a result:

  1. The business as a whole closes
  2. The particular workplace where the employee was employed closes; and/or
  3. There is a reduction in the size of the workforce wholly or mainly attributable to the fact that the requirement for employees to carry out work of a particular kind or to carry out work of a particular kind in the place that the employee was employed by the employer has ceased or diminished

The third ground appears to be the applicable one in the circumstances – Barclays and Barclays Capital have experienced tricky trading conditions over the last year or so and are seeking to shift into other areas, thus requiring fewer employees to undertake work of a particular kind.

It is common where redundancies are being made for settlement agreements (formerly known as compromise agreements) to be used to limit the liability of the employer to the employee in terms of legal proceedings. In return, the employer will (normally) provide the redundant employee with some form of financial benefit and provide them with a reference. In order for the settlement agreement to be valid and enforceable, the employee must obtain legal advice from an independent legal adviser on the terms and effects of the agreement, in particular the effect of the settlement agreement on the employee’s ability to submit an Employment Tribunal claim. A useful beginner’s guide for settlement agreements can be found on this website.

COT3 agreements are agreements which are used by ACAS to settle actual or potential Employment Tribunal proceedings – these have and will become more common as mandatory early conciliation for Employment Tribunal claims has just been introduced.

The effect of the wave of redundancies at Barclays may see the use of settlement agreements and COT3 agreements between employers and employees rise between now and 2016. However, we’ll have to wait and see what the actual effect of these redundancies at Barclays (and other institutions) will be.

About

Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees Call 020 3397 3603 to speak to one of the members of our employment team or email us on enquiries@redmans.co.uk. Redmans have offices in Richmond, Chiswick, Hammersmith, Fulham, Kingston, Wimbledon, Ealing, Kings Cross and Marylebone (meetings strictly by appointment only).

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Testimonials

4.68 Average

69 Reviews

Anonymous

The guidance and assistance I recently received when using Redman's was fantastic. Caroline & Chris were both very informative and understanding walking me through each step. Thank you.

Posted 1 day ago

Nicola W

Fantastic service, very quick and efficient. Thank you

Posted 1 day ago

Anonymous

Excellent professional service.

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Anonymous

As with All solicitors advice without consequence but understood and communicated my legal position

Posted 1 week ago

Anonymous

Prompt, professional and excellent service.

Posted 1 week ago

Dominic C

Excellent service, prompt and helpful

Posted 2 weeks ago

Anonymous

I found Redman’s to be very efficient and got me the best deal available in the short time scale that was available.

Posted 2 weeks ago

Victor L

Very professional. Provided excellent advice on my Settlement agreement.

Posted 2 weeks ago

Anonymous

Professional from start to finish.

Posted 2 weeks ago

Oliver W

Excellent service provided by Redmans, will certainly consider using again.

Posted 2 weeks ago

Melanie H

Very professional and extremely personable service. Thank you very much.

Posted 1 month ago

Anonymous

I found Chris to be very approachable and easy to speak with about complex matters. He took action quickly and his updates to me, as his client, were prompt. I would recommend Chris and the team at Redmans without hesitation.

Posted 1 month ago

Anonymous

Good advice

Posted 1 month ago

Anonymous

Overall happy with the service provided by Chris and Rana.

Posted 1 month ago

Anonymous

Chris and Rana provide a great service, very informed, diligent and care about your result, would recommend Redmans

Posted 1 month ago

David W

A speedy efficient friendly service, I would definitely recommend Redmans Solicitors for processing Settlement Agreements.

Posted 1 month ago

Anonymous

Both Rana and Chris were fantastic. From the first phone call I was confident my matter was in good hands. I was not disappointed. I would highly recommend Redmans. Thank you again for all of your support and advice.

Posted 1 month ago

Federico S

Great advices and communication. Through Redmana I obtained match more than what I thought. Highly recommended

Posted 1 month ago

Tom G

A good and efficient service with the required legal advice provided for a settlement agreement.

Posted 1 month ago

Francis T

The solicitor I used was Chris Hadrill, who I found extremely professional and I felt that he made me feel at ease, considering the subject matter he was assisting me with.

Posted 1 month ago

Anonymous

Chris provided excellent assistance with the negotiation of my settlement agreement. From start to finish, I was consitently updated and advised on the best course of action to take. I would highly recommend Chris and Redmans Solicitors.

Posted 1 month ago