Voluntary redundancy and compromise agreement

noelphobic

Is it standard practice to be required to sign a compromise agreement when you are leaving because of voluntary redundancy? If VR has been agreed can the company still pull the plug before the agreement has been signed. Can the individual?

I'm not planning to do so and don't want the company to do so but forewarned is forearmed!

Any replies would be appreciated.

SarEl

Yes, yes and yes.

Sycorax

What he ^ said . Compromise agreements are standard issue where anything above statutory redundnacy is being paid.

getmore4less

Sycorax wrote: »

What he ^ said . Compromise agreements are standard issue where anything above statutory redundnacy is being paid.

Common but not standard.

guardianangel

noelphobic wrote: »

Is it standard practice to be required to sign a compromise agreement when you are leaving because of voluntary redundancy? If VR has been agreed can the company still pull the plug before the agreement has been signed. Can the individual?

I'm not planning to do so and don't want the company to do so but forewarned is forearmed!

Any replies would be appreciated.

A compromise agreement is a legal document, you are requried to get your solicitor to look over it so you understand what you are signing and your solicitor also has to sign it to confirm that he has advised you of the implications of signing it. Your company should usually pay this and it costs around £250 + VAT.
There is a lot of legal jargon in the document so it important that you understand. to sum it up, it basically means that you have to keep the agreement confidential, obviously, you can discuss it with your family but it is more about going to the papers and putting it on FB etc. It includes the standard things about returning company property, seeking legal advice, the payment that is owe to you etc.
It is not a standard practice but the fact they are asking you to sign it means that you are being given a 'package' to leave, as in a sum of tax free money in addition to what you would have received via VR.
Hope this helps.

Dirk_Gently_2

And the key point to understand about a compromise agreement is that the "compromise" isn't a "meeting in the middle" type of compromise.

This document is you compromising (i.e. signing away) your rights to take any future legal action against the employer, which is why you get over and above the statutory payments for signing it.

In return the company get a lower vulnerablity to any legal action from you - even if they win, cases are expensive and time-consuming to defend.