Over the past 9 years the economy has struggled and in line with this many businesses have either folded or had to make significant staffing cuts in order to survive.
We recently had a case where an employee was being made redundant after 10 years of service with his employer. The employee had been offered a lump sum payment by the employer ending their working relationship and a reference to help the employee seek further employment. These proposals were accepted by the employee.
These proposals were then drawn up into a document called a Settlement/Compromise Agreement.
A Settlement/Compromise Agreement is a legally binding contract which can be used to end an employment relationship on agreed terms. It usually provides for payment representing compensation for loss of position and any associated benefits, in return for waiving rights to bring any claim against the former employer to a Court or Employment Tribunal on matters that are specially covered within the Agreement.
The Agreement typically includes a clause recommending that the employee seeks legal advice as to the terms and effects of the Agreement, to ensure that you fully understand and agree with the proposals outlined.
If you receive a Settlement/Compromise Agreement and require further advice please do not hesitate to contact the office to book an appointment with either Rachel Barrow or Sarah Curbishley on 01606 48777.