Redundancy Compromise Agreement - Handling Multiple Sign-Offs

With many employers having to make multipleemployee retains their right to choose their own
employees redundant, demand for independentemployment law solicitor if they so wish. And the
legal advisers to sign off large numbers ofemployer or trade union must ensure they advise
Compromise Agreements is increasing. It is in theemployees of their right to instruct an alternative
employer's, employee's and trade union's interestemployment solicitor.
to simplify the process and ensure all employeesThe benefits of a streamlined sign-off process are
have access to expert employment law advice inthe same for all parties. A well-organised sign-off
the easiest way possible. This is particularly soprocess from an experienced employment law
where there are time constraints. So how can thissolicitor will ensure every employee receives
be done?correct legal advice on their agreement's terms
Compromise Agreement employment lawand compensation. They can then make an
A Compromise Agreements is a legally bindinginformed decision as to whether or not to accept
agreement between an employer and anwithin the deadline set by the employer. Where
employee. It is usual for a Compromisedeadlines are missed - and sometimes deadlines
Agreement to be entered into shortly before orapplied by employers can be tight - employees
after termination of an employee's contract. Thisrisk losing any offer of ex-gratia compensation
allows a clean break where the employee waivesover and above the statutory and contractual
their right to make a claim in return for an agreedminimum.
sum of compensation.For employers, the greater volume of cases can
It is a legal requirement that an employeegive them the chance to reduce the contribution
receives independent legal advice before enteringthey pay towards each employee's legal
into a Compromise Agreement. The employerexpenses.
usually pays a fixed sum towards the cost of thisCompromise Agreement legal advice - what to
legal advice.remember
The benefits of a streamlined processIf you are an employer or trade union and you
If you are an employer making multiplechoose to instruct one law firm to act for your
redundancies, or you are a trade unionemployees, this firm will negotiate with your legal
representing a number of people being madeteam or solicitors if they encounter any problems
redundant, the Compromise Agreement sign-offwith the Compromise Agreements. To make the
process can be time consuming and complex. Theprocess as straightforward as possible, it is
more law firms involved, the more cumbersomeimportant to instruct your own specialist
it can be. Where multiple redundancies are beingemployment law solicitors to draft the
made, it is often more efficient for one specialistCompromise Agreements and advise on your
employment law firm to advise all employees.proposed enhanced settlement terms.
This ensures consistency and reduces the timeIt is also critical you remember to advise
needed to complete the process.employees they can choose their own solicitor or
Employers and trade unions can choose a lawproperly qualified legal adviser and do not need to
firm that offers a bulk Compromise Agreementuse your nominated firm providing the on-site
sign-off service. However, where a single firm isservice.
nominated by the union or employer, every