A deep-sea engineering firm are set to cut 410 jobs by the end of the year. The firm currently employs just under 2,000 workers in Aberdeen.
The firm have stated that the redundancies would affect both workers in the North of Scotland and at its headquarters in London. The redundancies will be finalised at the end of the year. The redundancies have come as a result of the current oil price and the downturn in the sector.
270 of the positions are thought to be onshore roles in the UK with many other workers across Europe also suffering a similar fate due to the “deteriorating market situation.”
Subsea 7 vice president for the UK and Canada, Phil Simons, said: "These proposed redundancies follow a continued trend of project delays and cancellations witnessed across the UK's oil and gas industry that have impacted our activity levels, making it necessary to size our business base to align with our workload as well as consolidate various functions across the UK.
"As we look ahead we need to retain a sufficient capacity to execute existing work and win new awards while maintaining our core expertise in preparation for when the activity levels pick up again.
In such employment sectors with skilled workers, it is common for employers to offer settlement agreements. While many view settlement agreements as a negative thing, they can be beneficial for both employers and employees. Settlement agreements tend to have a substantial amount of cash due to the fact that they are saving money in the long term on legal fees. Employees can often include other aspects such as a reference letter and other aspects. It saves both parties on legal fees and ensures a departure from the company that suits both parties and can result in employees having substantial payoffs.
Settlement agreements can also benefit employers, as mentioned the firm can save money in regards to legal fees. Furthermore, companies can offer conditions in the settlement agreement that prevents workers from entering the same area of work for a period, or sharing trade secrets. This normally results in a more hefty settlement but ensures that firms competitors do not lose employees to competitors.
When negotiating a settlement agreement, it is important that it is a negotiation. You do not need to accept a settlement offer, however, once you do it is a legally binding document. It is important to note down any changes in the offer or any offer made to you without a solicitor. While an initial cash offering may be very tempting, it is important to note that settlement agreements can have a long-term effect on careers with certain clauses placed in them. Our team of solicitors will be able to inform you what is a good offer and what you can expect from such an offer and if the settlement agreement is acceptable.
Our team of solicitors have the experience and skills to deal with settlement agreements and any other employment-related legal issues. Whether it be discrimination, unfair dismissal or for negotiating a settlement agreement, contact our team of Aberdeen based solicitors using our online contact form.
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