Redundancy and Compromise Agreements

Regrettably, we are speaking to many people at the moment who are facing redundancy in the current downturn. It is usual for employers to produce a Compromise Agreement which will set out the payments and any other benefits to be paid by the Company to the employee upon termination of employment. Very often, an employer will provide more generous payments than the statutory minimum. Equally however it is important to ensure that at least the statutory minimum benefits are paid. The agreement between the employer and employee is usually set out in a Compromise Agreement. The agreement will provide the employer with the comfort of knowing that after the termination of employment there can be no further claims. The employee can be assured once the agreement has been signed that he or she will receive at least the minimum statutory benefits and any additional benefit or payment that has been negotiated. To be binding, the agreement must be in a specified form and must be explained by a Solicitor acting for the employee.

There are numerous aspects to be considered. An employee does not have to accept the agreement as first drafted and we are frequently instructed to negotiate better terms.

Employers will agree to make payment of the employees fees in relation to the Compromise Agreement or at least make a substantial contribution to them. Frequently we are able to conclude all the necessary work within that fee to ensure that our clients pay nothing.

It is very important that you seek specialist advice in relation to a Compromise Agreement. We can see clients at short notice and in the evenings and on Saturday mornings by appointment.

Please contact Richard Gregory on 01264 325811
or e-mail him at rgregory@bsandi.co.uk for help and advice.