United Kingdom: Redundancy/Layoff

Settlement agreements often involve complex tax implications that can significantly affect how much money employees actually receive. Understanding which payments qualify for the £30,000 tax exemption, which are fully taxable, and which may be paid entirely tax-free is essential before signing any agreement.

When your employer offers voluntary redundancy through a settlement agreement, understanding the key differences from statutory redundancy becomes crucial. This comprehensive analysis examines the legal frameworks, financial implications, and strategic considerations that determine whether accepting a negotiated settlement or proceeding through formal redundancy procedures better serves your interests.

The UK government's plan to remove the cap on unfair dismissal compensation and reduce the qualifying period from two years to six months will fundamentally reshape how employers use fixed-term contracts. These changes, effective January 2027, mean that employees on fixed-term contracts of six months or more will gain significant new protections, requiring employers to identify fair reasons and follow proper procedures when contracts expire without renewal.

In this Inbrief, we summarise the basic legal position on maternity and adoption, shared parental leave, paternity leave, parental leave, time off for dependents, carer’s leave and flexible working...

The law relating to paternity leave and pay is not as developed or as complicated as maternity legislation, but employers still need to be aware of the legal position.

The landscape of employment law in the UK is currently undergoing a significant transformation following the Employment Rights Act 2025 receiving Royal Assent on 18 December 2025.

In this second part of our podcast on the Employment Rights Act 2025 reforms coming into force in April 2026, Jenny Andrews and Sian McKinley, both Of Counsel, together with Knowledge Counsel Anna Henderson...

Large and multi-site employers face a broader collective consultation net, as the government consults on a new organisation wide threshold, favouring a single fixed number of dismissals.

Our dashboard breaks down what's in the Employment Rights Act, showing how these reforms will transform employment law.