I reluctantly signed a severance agreement earlier this year after my former employer underwent restructuring, rendering my position redundant.
I was hesitant to sign the agreement because I felt that my employer did not make a genuine effort to consider alternative positions I had applied for.
All affected employees had an opportunity to apply for different roles during the restructuring and before redundancies. I applied for several positions, all of which were within my skill set. I had been advised by HR that impacted personnel would be given priority before external hires.
I was not called to interview for the majority of applications, and no feedback was given. I applied for a junior role within my organisation and was not invited to interview, and was advised Ireland as a location was not preferred.
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During a consultation meeting, I shared my concerns to my manager and HR – that I saw no meaningful engagement or effort to consider alternative employment and was considering initiating a grievance.
I was then advised I had 24 hours to sign the severance agreement and if I did not, I would be made redundant regardless and the severance package would be off the table. I considered taking it to the Workplace Relations Commission (WRC) but decided to sign the agreement, as I had no time for counsel. The signed agreement prohibits my taking further action.
I was advised verbally there were no performance issues on my part. My full bonus confirmed this. I believe there has not been due process and that I was coerced into signing an agreement before due process was completed. What recourse have I?
The main issue here is that you do not appear to have been given sufficient time to seek legal advice before signing a legal document, which is “problematic”, according to experts in employment law and human resources.
Moira Grassick, chief operating officer at employment law and HR firm Peninsula Ireland, says employers have an obligation to provide workers with the right to seek counsel before signing legal documentation.
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“While a severance agreement is normally considered to be legally binding, the document may be null and void if the employee can prove that it was signed under pressure, that there was insufficient time to seek legal counsel, and that it was therefore signed with naivety,” she says.
Should the reader submit a claim with the WRC, they must do so within the timeframe set out in the specific employment legislation relevant to their complaint, she says.
“It’s also important to note that if the WRC did allow a case to proceed, and the employee were to win a claim, it is possible that any enhanced pay they have received may be taken into consideration when determining the value of the award.
“In other words, if the employee received a lump sum as part of the settlement agreement, the WRC could, at the discretion of the adjudicator, deduct that value from any successful reward,” she says.
‘If the employee can prove they were given 24 hours’ notice to sign a severance agreement, that it was ‘sign now or it’s off the table’, then they would have a case’
— Michelle Halloran, Halloran HR Resolutions
Grassick adds that employers have an obligation to seek alternative employment for staff members affected by a redundancy process.
“Best practice in this situation would have been to invite the employee to interview for available roles, even if those roles were at a more junior level.
“For the roles based outside of Ireland, the employee should also have been asked if they would be happy to relocate or work remotely,” she says.
Michelle Halloran, independent HR consultant and workplace investigator of Halloran HR Resolutions, says it would be “problematic” if the reader was given 24 hours in total to sign the agreement.
“I’m surprised if an employer would do that,” she says, adding that employees in similar circumstances are commonly given a week.
She says employers can sometimes add a provision to a document, often where an enhanced redundancy package has been arranged, that agrees the party will not lodge a grievance with the WRC.
“A key requirement on that, and a key requirement on redundancy packages, is that you’re allowed enough time to get independent advice,” she says.
Most WRC time limits are six months, though this can be extended in some circumstances, Halloran says.
“If the employee can prove they were given 24 hours’ notice to sign a severance agreement, that it was ‘sign now or it’s off the table’, then they would have a case,” she says.
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She adds that employers must make every effort to relocate, redeploy or retrain an employee whose role is being made redundant.
“Redundancy is the last option,” she says.
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