Redundancy may lead to compromise agreements. You should review both your employment contract and the employer's redundancy policy during an economic downturn to be prepared for what could happen.
These days, redundancy compromise agreements are quite common. Understanding redundancy is necessary in order to comprehend such documents. You can also visit to the legal practice solicitors to get more detail about redundancy settlement.
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If the company no longer requires the job, it is considered redundant. If the employer is out of business, insufficient capital to continue operations, or if the organization is restructuring, if it is necessary to streamline operations, or if technology has made certain job positions redundant, redundancy may occur.
Both voluntary and mandatory redundancy are possible. Employers may choose to reduce overheads by imposing voluntary redundancy. Employers would request employees to submit resignations. The most feared of the two is compulsory. This happens because an employer declares certain positions and personnel redundant.
Redundancy compromise agreements are a relatively new concept. Employers have initiated this agreement to stop redundant employees filing complaints at the Employment Tribunal. Any employee can complain about unfairness in any redundancy process.
Redundancy compromise agreements are the only way for an employer to ensure that no employee with redundant status files a legal complaint before the Employment Tribunal. As a settlement for any employee claim, the same redundancy agreement compromise could be final. Employees could not ignore the fact that this deal was offered for a substantial sum of money.