As redundancy figures continue to rise, Manchester based Rowlands solicitors is highlighting the benefit of compromise agreements in avoiding redundancy disputes and potential strikes.
 
Both DTZ and Johnston Press experienced high profile redundancy disputes recently, resulting in staff protests and publicly expressed dissatisfaction with reduced redundancy packages, both of which could have been avoided had compromise agreements been signed, according to William O'Neill, partner and head of employment at Rowlands.
 
A Compromise Agreement sets out an employee's employment rights including, where appropriate, the employee's redundancy entitlement. Employees, by virtue of these Agreements, forego the right to pursue employment rights before the Employment Tribunal, in return for a severance package. It is a common feature of these Agreements to include confidentiality clauses. The document will only become legally binding once an independent Solicitor has explained to the employee the effect of the Agreement.
 
As the economic climate becomes increasingly challenging, more businesses should be looking at establishing compromise agreements to prevent costly and embarrassing disputes.
 
Compromise agreements are not a mechanism by which companies snatch away employees' right to tribunal, but allow both sides to lay their cards on the table and come to an agreement that everyone is happy with.