Enhanced Redundancy Packages and Settlement Agreements

Sam Hannon reviews the decision in Geoffrey Garatt v Mirror Group Newspapers Limited 2011 and assesses its impact on the use of Settlement Agreements

In an important judicial decision it has been confirmed that terms which require a Settlement Agreement to be signed in order for an employee to benefit from an enhanced redundancy package do not need to be expressly incorporated in an employment contract – they can be implied.

The decision in Geoffrey Garatt –v- Mirror Group Newspapers Limited 2011 could be useful to employers in persuading an otherwise reluctant employee to sign a Settlement Agreement to guarantee their enhanced redundancy package. Employers are often keen to achieve a clean break on redundancy and the use of Settlement Agreements is a very effective way of achieving this.

For further information about the Garatt case in particular or Settlement Agreements generally, contact Sam Hannon by phone or email at sam.hannon@sleeblackwell.co.uk