Welcome!

News Feed Item

ThomasMansfield Reveal How to Get the Best from a Severance Agreement

LONDON, February 11, 2013 /PRNewswire/ --

Are you thinking of leaving your job? Employment solicitors ThomasMansfield are on hand to help you read between the lines

Few employees need telling that the face of the jobs market has altered remarkably in the last four and a half years, since the credit crunch of 2008. In that time, 2.7 million people have been made redundant - equivalent to one in ten employees at the start of the recession.

The increasing instability of modern workplaces - where flexible contracts and freelance operations allow both more freedom yet also a much reduced sense of support and ongoing growth - means that redundancy is no longer a distant nightmare, but a much more pressing threat.

For employees who face redundancy in 2013, the fact is that their own performance may well have very little to do with it. Increased economic pressures and the demand to downsize on companies which, prior to the recession, were expanding exponentially, are hitting employers hard.

Ironically, even redundancy itself is an expensive business - it is estimated to have cost UK employers £28.6 billion in the last four and a half years; and with more big name companies reporting losses or liquidation (HMV now potentially joining recent names like Jessops), it is not going to go away.

What does a severance agreement  have to do with redundancy?

When an employer wishes to make an employee redundant, the employee may be offered a severance agreement.

Also known as a compromise agreement, this agreement makes an arrangement for the employer to pay the employee a certain amount of money so that the employee will contractually agree not to file any complaints or claims against that company.

It sounds like a tricky business because it is a tricky business. For both employers, and especially the concerned employees, it is something of a minefield.

The purpose of the agreement is simple:

  • to ensure that employer and employee walk away from the table with a guarantee that there will be no further disputes

How does it happen?

It is common to use a solicitor to help the employee through the many potential issues of a severance agreement. In order for the employer to be able to enforce the agreement the employee must receive legal advice on the agreement before the agreement is signed.

The employer will usually make a contribution towards the employee's costs for receiving legal advice on the agreement. The key questions the solicitor or advisor will be looking to resolve are:

  • Is the clause understandable to the employee?
  • Does the employee have any claims against the employer that are not addressed in the agreement?
  • Is the compensation offered by the agreement fair?
  • Is the compensation sufficient to ensure that the employee will not launch any later claims against the company?

This process is usually followed by a discussion between the parties on any outstanding issues before the agreement can be signed. Employees are reminded that once a compromise agreement is signed, it is not possible to take the company to court regarding employment law issues unless the company itself has broken the terms of the agreement.

Sources:

http://www.thomasmansfield.com/employees/compromise-agreement/

http://www.findlaw.co.uk/law/employment/losing_a_job/500395.html

http://www.cipd.co.uk/pressoffice/press-releases/redundancies-since-jobs-recession-140312.aspx

http://www.bbc.co.uk/news/business-21023602

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at 20th Cloud Expo, Ed Featherston, director/senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
910Telecom exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and exchanges.
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, discussed how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a practic...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and micro services. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your contain...
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
Niagara Networks exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Niagara Networks offers the highest port-density systems, and the most complete Next-Generation Network Visibility systems including Network Packet Brokers, Bypass Switches, and Network TAPs.
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...