Redundancy and Compromise Agreements

If your employer gives you notification of redundancy, you may be offered a compromise agreement to bring the matter to a conclusion as soon as possible.

We recommend that you obtain legal advice at an early stage. Firstly, need to be sure that it is a genuine redundancy situation. A redundancy situation exists where:-

• the business or part of the business has stopped operating ; and/or

• the business has moved to a new place; and/or

• the requirements of the business for work of a certain type has ceased or diminished.

If it is a genuine redundancy situation, you still need to be sure that you have been fairly selected following a fair procedure.

All of these factors can affect whether you should sign the compromise agreement or reject it and claim unfair dismissal. In many cases, it is appropriate to negotiate a better deal in the compromise agreement.

You may want to visit our main Advantage Employment Law website for further details about redundancy.