Jaguar Land Rover Redundancies & Settlement Agreements | Employee Advice

What Has Jaguar Land Rover Announced?

Jaguar Land Rover has confirmed plans to reduce its global workforce by approximately 4,000 roles over two years.

The restructuring forms part of a programme intended to deliver around £1.7 billion in savings and improve the company’s long-term competitiveness.

Reports indicate that the reductions are expected to fall mainly on salaried employees, including management and other professional roles, rather than hourly paid production workers.

JLR has a significant UK presence, with operations including Solihull, Coventry/Whitley, Gaydon and Halewood.

The announcement comes against a challenging backdrop for the automotive industry, including international competition, changing technology, pressure on sales and the effect of international tariffs.

Voluntary Redundancy at Jaguar Land Rover

JLR has reportedly introduced voluntary redundancy as part of the proposed workforce reduction.

Under a voluntary redundancy programme, employees may be invited to apply to leave the business in return for a redundancy package.

An enhanced voluntary redundancy package can potentially be more valuable than an employee’s minimum statutory redundancy entitlement. However, employees should carefully review exactly what is being offered before accepting.

In particular, consider:

• the redundancy or compensation payment;
• notice pay or payment in lieu of notice;
• accrued but untaken holiday;
• bonuses, commission and other outstanding remuneration;
• pension and other benefits;
• treatment of shares, share options or long-term incentive arrangements;
• restrictive covenants;
• the agreed termination date;
• whether you are giving up potential employment claims; and
• whether an agreed reference will be provided.

Applying for voluntary redundancy does not necessarily mean that an employer must accept your application. Employers can usually decide which applications to accept based on the needs of the business.

What Happens If My Role Is at Risk of Compulsory Redundancy?

If voluntary redundancies do not achieve the required workforce reduction, some employees may face compulsory redundancy.

A redundancy dismissal must still be handled fairly.

Depending on the circumstances, this can involve identifying an appropriate pool of employees, applying reasonable and objective selection criteria, carrying out meaningful consultation and considering whether suitable alternative employment is available.

Employees should be given an opportunity to understand why their role has been placed at risk and, where appropriate, challenge the selection process or information used by their employer.

If you believe you have been selected because of discrimination, whistleblowing, trade union activities, family-related leave or another legally protected reason, you should obtain specialist employment law advice promptly.

Collective Consultation and Large-Scale Redundancies

Where an employer proposes large numbers of redundancies, additional collective consultation obligations can apply.

Where 100 or more redundancies are proposed at one establishment within a 90-day period, collective consultation must generally begin at least 45 days before the first dismissal takes effect.

Consultation will normally take place with recognised trade union representatives or, where appropriate, elected employee representatives.

The purpose is not simply to announce decisions that have already been made. Consultation should address matters such as ways of avoiding dismissals, reducing the number of redundancies and mitigating their consequences.

The precise collective consultation obligations applicable to an individual JLR employee will depend on how the proposed redundancies are organised and implemented.

Am I Entitled to Redundancy Pay?

Employees who have at least two years’ continuous employment will generally qualify for statutory redundancy pay, provided the relevant statutory conditions are met.

The amount is calculated by reference to:

• your age;
• your length of continuous service; and
• your weekly pay, subject to the applicable statutory limit.

Your contract, employer redundancy policy or the terms of a voluntary redundancy exercise may provide substantially more than the statutory minimum.

This is why it is important to distinguish between your existing legal or contractual entitlements and any additional compensation being offered in return for signing a settlement agreement.

Have You Been Offered a Settlement Agreement by Jaguar Land Rover?

Employees leaving through a voluntary redundancy programme or another negotiated exit may be asked to sign a settlement agreement.

A settlement agreement is a legally binding agreement between an employer and employee. Typically, the employee receives an agreed financial package and other exit terms in exchange for agreeing not to pursue specified employment claims against the employer.

For a settlement agreement to validly waive the relevant statutory employment claims, the employee must receive advice from an appropriate independent adviser.

This is an important safeguard.

A solicitor advising you should not simply explain where to sign. They should help you understand what you are giving up and whether the agreement properly reflects the terms you have been offered.

What Should I Check Before Signing a JLR Settlement Agreement?

Before signing, it is worth checking the entire financial and contractual package.

For example, does the agreement correctly deal with your redundancy payment, notice entitlement, holiday pay, bonus or commission, benefits and any other outstanding sums?

You should also understand the tax treatment of the different payments and whether existing post-termination restrictions could affect where you work next.

For senior employees in particular, issues surrounding bonuses, shares, LTIPs, confidentiality, restrictive covenants and references can be commercially significant.

You may also have potential claims arising from the redundancy process itself. Those claims should be considered before you agree to waive them.

Can I Negotiate My Redundancy Package?

Potentially, yes.

Whether there is scope to negotiate will depend on the circumstances.

Relevant factors can include the fairness of the redundancy procedure, your contractual entitlements, length of service, seniority, potential employment claims and the commercial circumstances surrounding your departure.

Negotiation is not necessarily limited to money.

Employees may also seek changes concerning:

• references;
• announcement wording;
• termination dates;
• garden leave;
• restrictive covenants;
• bonus or commission payments;
• shares and incentives;
• confidentiality provisions; and
• contribution towards legal fees.

A specialist employment solicitor can identify whether there are reasonable grounds for seeking improvements before the agreement is signed.

Do I Have to Sign a Settlement Agreement?

No.

A settlement agreement is voluntary. Your employer cannot simply require you to sign away your employment rights.

However, an enhanced payment may be conditional upon you entering into the agreement. If you decide not to sign, you may still retain your underlying statutory and contractual entitlements, but you may lose the opportunity to receive additional compensation offered specifically under the settlement terms.

This makes it important to understand the difference between what you are already entitled to receive and what you are receiving specifically in exchange for settling your claims.

How Solidaire Solicitors Can Help JLR Employees

Solidaire Solicitors specialises in employment law and settlement agreements.

We advise employees at all levels, from junior employees through to senior managers and executives, on redundancy and negotiated exits.

If Jaguar Land Rover has offered you a settlement agreement, our employment solicitors can:

• review the agreement and explain it in clear, practical language;
• check your redundancy, notice and other contractual entitlements;
• identify potentially valuable employment claims;
• assess whether the overall package appears reasonable;
• advise on restrictive covenants and other post-termination obligations;
• review references and confidentiality provisions;
• identify terms that should be amended; and
• negotiate improved terms where appropriate.

We offer a nationwide service by telephone and video, so you do not need to live close to one of our offices to obtain advice.

Settlement agreements can often be dealt with within 24–48 hours, with urgent appointments available where deadlines are short.

In many cases, the employer provides a contribution towards the employee’s legal fees for obtaining advice on a settlement agreement.