Any redundancy compromise agreement might emerge if an employer fails to carry out a proper redundancy procedure. There are many misconceptions about redundancy and how any compromise agreement could help in the resolution of the problem.
Compromise agreements may be relevant where there is redundancy. During an economic downturn, you should carefully review your employment contract as well as the employer’s redundancy policy so you know what you could expect when the worst scenario comes. Redundancy compromise agreements are common these days. To understand such documents, it would be necessary to understand redundancy.
A job is made redundant if the business does not need it anymore. Redundancy could set in if the employer runs out of business, if there is insufficient capital for continuous operations, if there is a restructuring, if there is operational streamlining, and if an investment in technology makes specific job positions unnecessary.
There could be voluntary and compulsory redundancy. Voluntary redundancy is carried out when the employer aims to trim business overheads. The employer would ask employees to initiate resignation. Compulsory is the more feared type between the two. This is because the employer declares specific positions and personnel as redundant.
Redundancy compromise agreement is a relatively new concept. It has been initiated by employers who aim to prevent redundant employees from filing complaints before the Employment Tribunal. Logically, any employee may complain about any perception of unfairness in any redundancy procedure. Claims may be filed if the employer obviously does not clearly comply with the proper redundancy process.
The redundancy compromise agreement is the only means for any employer to make sure no legal complaint would be filed before the Employment Tribunal by any redundant employee. The same redundancy compromise agreement could be full and final as a settlement for any potential claim by employees. The deal is offered for a hefty amount of money, something employees could not easily set aside and overlook.
Once the agreement is signed by all parties involved (the employee, the employer, and he employment solicitor) the agreed upon amount of compensation may be transferred or delivered within a week or two. In some cases, the payout could go through the following company pay run. Payment date would be specified in the agreement.
If you are anxious about how much this could cost you, be relieved to learn that it would cost not any dime. The employer has the responsibility to foot the bill. The overall benefits and advantages would surely be worth it.
Why hire an employment solicitor? A redundancy compromise agreement could be written in legal language, full of technical terms and jargon. You should understand everything that is mentioned and detailed in the document. The employment law specialist would guide you in every step of the way. Thus, you could be sure your welfare is fully protected. You might also be not forced to accept a faulty and onerous redundancy compromise agreement that would benefit only the employer.