Legal & General Voluntary Redundancy: How Solidaire Solicitors Can Help Employees

What Has Legal & General Announced?

Legal & General told employees on 23 September that it expects to reduce the size of the organisation by approximately 1,000 roles by the middle of 2027.

The Guardian reports that the programme will initially involve voluntary redundancies in the UK. Legal & General has said that the changes form part of its wider transformation and simplification of the business. The company has also said it will consult with its unions and support employees throughout the process.

For affected employees, one of the first questions may therefore be:

Should I volunteer for redundancy?

There is no single answer. Much will depend on the financial package offered, your length of service, your employment contract and benefits, your future employment plans, and your individual circumstances.

What Does Voluntary Redundancy Mean?

Voluntary redundancy is where an employee agrees to be considered for redundancy rather than waiting to see whether their role is selected through a compulsory redundancy process.

Importantly, volunteering does not necessarily mean that your employer has to accept your application. Acas explains that employers can consider the needs of the business when deciding whether to accept volunteers.

Before volunteering, you should therefore understand both the proposed package and what accepting it could mean for your legal and financial position.

Check the Financial Package Before Agreeing

One of the most important questions is whether Legal & General is offering an enhanced voluntary redundancy package above employees’ basic statutory or contractual entitlements.

Depending on the scheme and your circumstances, an exit package could potentially involve:

• statutory, contractual or enhanced redundancy pay;
• notice pay or payment in lieu of notice;
• accrued but untaken holiday;
• bonus, commission or other incentive payments;
• treatment of pension and other workplace benefits;
• share schemes or long-term incentive arrangements;
• an agreed employment reference; and
• an additional termination payment under a settlement agreement.

The exact position will depend on the terms Legal & General offers to the individual employee.

Acas confirms that employers may provide enhanced or contractual redundancy pay above the statutory minimum.

Before accepting voluntary redundancy, it can therefore be worthwhile checking the entire package rather than concentrating solely on the headline redundancy payment.

Have You Been Given a Settlement Agreement?

Some employees leaving through voluntary redundancy may also be asked to enter into a settlement agreement.

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

Crucially, an employee must receive advice from a relevant independent adviser for a settlement agreement to satisfy the statutory requirements for validity. Acas also explains that settlement agreements can include matters such as financial payments, references and confidentiality provisions.

This is where specialist employment law advice can be particularly valuable.

How Solidaire Solicitors Can Help Legal & General Employees

If you work for Legal & General and receive a voluntary redundancy proposal or settlement agreement, Solidaire Solicitors can review the documents and explain what they mean in straightforward language.

Our employment lawyers can help you:

Understand your redundancy package. We can review the figures and explain the different elements of your proposed termination package, including redundancy compensation, notice and other contractual payments.

Review your settlement agreement. We can go through the agreement clause by clause so that you understand what you will receive and which rights and potential claims you are being asked to waive.

Identify terms that may need improving. A settlement agreement is not necessarily a “take it or leave it” document. Acas expressly recognises that settlement offers can be discussed, negotiated and counter-offered.

Negotiate where appropriate. Depending on your circumstances and the terms offered, there may be scope to seek changes to financial or non-financial provisions.

Review restrictive covenants and confidentiality clauses. These provisions can affect what you can do after leaving your employer, so it is important to understand their practical effect before signing.

Consider your reference and future employment. An agreed reference or wording around internal and external announcements can sometimes be an important part of an exit package, particularly for senior or long-serving employees.

Look at the wider circumstances. If you have existing concerns involving discrimination, whistleblowing, grievance issues, unfair treatment or another employment dispute, these could be relevant when considering a proposed settlement. Solidaire Solicitors advises employees on these wider employment law issues as well as redundancy and settlement agreements.

Can a Voluntary Redundancy Package Be Negotiated?

Potentially, yes.

Whether there is realistic scope for negotiation depends on the circumstances. Factors can include your contractual position, length of service, seniority, the terms of the voluntary redundancy scheme, any potential employment claims and what the employer is seeking from the settlement agreement.

Negotiation is not limited to money. Depending on the situation, employees might also want to discuss matters such as:

• the termination date;
• notice arrangements;
• bonus or commission;
• accrued holiday;
• benefits;
• references;
• restrictive covenants;
• confidentiality provisions; or
• announcements about their departure.

Acas guidance confirms that settlement agreements are voluntary and that workers can negotiate and make a counter-offer.

The important point is to obtain advice before signing, because signing a valid settlement agreement will normally mean giving up the right to bring the particular Employment Tribunal or court claims covered by it.

Don’t Feel Pressured to Sign Immediately

Employees should normally be given reasonable time to consider a settlement agreement and obtain independent advice.

The Acas Code of Practice recommends allowing employees at least 10 calendar days to consider a formal written settlement agreement unless the parties agree otherwise. What constitutes a reasonable period can nevertheless depend on the circumstances.

If you receive an agreement with a short deadline, speak to an employment solicitor as soon as possible.

Solidaire Solicitors offers a fast settlement agreement service, with agreements often completed within 24–48 hours and same-day sign-off available for urgent cases.

Will Legal & General Pay My Legal Fees?

Where an employer asks an employee to sign a settlement agreement, the employer will commonly offer a contribution towards the cost of obtaining independent legal advice, although there is no general requirement for the employer to pay that cost.

Acas states that employers should consider contributing towards independent advice, while Solidaire Solicitors notes that in many cases the employer’s contribution is sufficient to cover its fixed-fee settlement agreement review service.

We can explain the position on fees before carrying out the work.

Considering Voluntary Redundancy from Legal & General? Speak to Solidaire Solicitors

If you are a Legal & General employee considering voluntary redundancy, you do not have to assess the paperwork alone.

Before you volunteer, accept an exit package or sign a settlement agreement, obtaining specialist employment law advice can help you understand:

What am I entitled to?
Is the proposed package structured correctly?
What rights am I giving up?
Are there terms I should ask to change?
Is there anything worth negotiating before I sign?

Solidaire Solicitors specialises in employment law, including redundancy, settlement agreements, unfair dismissal, discrimination and workplace disputes, and acts for employees ranging from junior staff through to senior executives.