For Individuals

Q. What is Redundancy?

A. A reduction or ceasing of a particular kind of work. This can involve a reduction in the type of jobs required or possibly a complete closure of a business or department. This could also involve a reorganisation of work where a business continues to trade but restructures its workforce to such an extent that different jobs are required and some posts are no longer needed.

Q. What is Unfair Dismissal?

A. The employer has to show that the reason for the dismissal was fair and the decision to dismiss was reasonable. The employer also has to show that the way they dismissed the employee was fair and followed the statutory procedures. Examples of 'fair' dismissals could include dismissals based on the misconduct or capability of an employee.

Q. What is a Compromise Agreement?

A. A Compromise Agreement is a legally binding agreement, usually between an employee and employer, that sets out the terms and conditions reached when a contract of employment is to be terminated or a dispute is to be resolved (when the employment contract is not being terminated).

There are a number of different circumstances such as redundancy, by mutual agreement, dismissal, or to settle an Employment Tribunal claim, when such as agreement can be used.

Q. Why am i being asked to sign a Compromise Agreement?

A. The purpose of a Compromise Agreement is to provide certainty for both parties and it is very important that you understand what you are agreeing to before signing such an agreement.

In fact it is a requirement of the Compromise Agreement that you have received independent legal advice from someone professionally qualified (usually a solicitor or qualified trade union adviser) to give that advice (s.203 Employment Rights Act 1996). In most cases the employer will pay or contribute towards the legal expenses incurred in receiving the legal advice on the agreement.

The most important thing to understand about a Compromise Agreement is that in signing the agreement and accepting the settlement terms you specifically exclude your right to make a claim against your employer in the Court of Employment Tribunal.

Please note: The Freqently Asked Questions on the Finn Gledhill website provide answers which briefly summarise complex areas of the law. Our solicitors are happy to discuss any of the issues covered in further detail. Contact details: Email enquiries@finngledhill.co.uk 
Tel. 01422 330 000.