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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

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    370 Reviews

    Glyn B

    Provided a great service, covered all my requirements

    Posted 6 hours ago

    Fidel A

    Redmans Solicitors recently helped me navigate a recent employment termination settlement agreement. Chris Hadrill is very professional and you will be in good hands with him. I score Redmans 4 out of 5 because things had to move fast and felt the team member assigned to my case wasn't very responsive at times. Having said that, I was very happy with the outcome and have no hesitation in recommending their services.

    Posted 23 hours ago

    Nigel A

    Chris Hadrill is hugely impressive - the right blend of assured calm and savvy professionalism. I've already recommended him to friends and family.

    Posted 1 day ago

    Matt O

    I was hugely impressed with the ease of being able to work with Redmans Solicitors and their professional approach. Mel was really clear around the process, and costings required and I felt comfortable throughout. I would certainly recommend.

    Posted 1 day ago

    Bryan G

    Great response, and also happy to assist

    Posted 1 day ago

    David L

    I was made a settlement offer by my employer to terminate my emplyment early. Redmans helped me understand the offer, and ensured that it was fair for someone in my position. They made a very stressful situation much easier. Excellent service.

    Posted 2 days ago

    Anonymous

    I can highly recommend Redmans. The service was professional and prompt and I would not hesitate to use them again. Thanks

    Posted 1 week ago

    Anonymous

    Overall I am satisfied with the performance from Redmans. The reason I have given 4 stars is that I had quite a lot difficulty in contacting the representative which was initially nominated for me. However, when I contacted Chris instead, he was excellent over the phone and secured a great outcome in short order. I would recommend Redmans Solicitors.

    Posted 1 week ago

    Anonymous

    Chris and Redmans were a great help. Effective and efficient, quick response from my first enquiry and then straightforward and attentive throughout with ultimately a positive outcome. I will use them again and recommend them.

    Posted 1 week ago

    Marie P

    Great service, quick responses, good advice and all in a no nonsense, no jargon manner. Would definitely recommend.

    Posted 2 weeks ago

    Anonymous

    Rana was amazingly thorough and professional!

    Posted 2 weeks ago

    Anonymous

    I am extremely happy with the legal advice I was provided with. My case was resolved to the best of my expectations. Thank you very much for your professional help.

    Posted 2 weeks ago

    Shahzad R

    Chris and his team were excellent. They provided sound advice and consultation that resulted in more cash than was offered. Would definitely recommend.

    Posted 2 weeks ago

    Sanjay B

    I would like to take this opportunity to thank Mel Chin, for all her support during my settlement process. Where she provided a professional service and was understanding. I would confidently recommend Redmans Solicitors to my friends and family. Thank you and wishing you all a Merry Christmas.

    Posted 4 weeks ago

    Paul O

    Excellent response time and communication during my dealings with Redmans

    Posted 1 month ago

    Gil T

    I don’t normally write reviews, but thought it was time on this occasion. Just wanted to say that I highly recommend Redmans - especially Rana Tandon, who helped me navigate around my employment contract. Rana was meticulous and thorough and all over my needs. Would I use Redmans again ? ..absolutely

    Posted 1 month ago

    Stephanie D

    Very thorough and professional service. I was very nervous about my employment case, as I had never dealt with anything like it before. However, the solicitors who handled my case made sure I understood everything. I was never kept in the dark and Redmans kept me constantly informed about what was going on with my case. I would definitely recommend Redmans Solicitors

    Posted 1 month ago

    Richard S

    Chris and Sacha were great throughout the entire process. Chris was very helpful once the initial discussions with my company began and before we agreed there was a case. Sacha was very responsive, patient and helpful throughout ensuring I felt I had the right information to make the best decision on next steps. A close friend and wife have both used Redmans in the past few years for unfair dismissals and the service continues to be first-class and I would strongly recommend them again. They definitely help reduce the anxiety that comes with uncertainty around new processes and situations. Thank you!

    Posted 1 month ago

    Jianya

    Very nice and patient went through the whole document with me.

    Posted 1 month ago

    Susan L

    Very helpful and led me through the redundancy process.

    Posted 1 month ago

    Jennice

    I was very impressed with the service that I received, and the speed in which it was handled. I would recommend them to a family member

    Posted 1 month ago