Employment: Possession Nine-Tenths of the Law?

The benefits of Compromise Agreements are well known to most these days.  They enable in a time efficient and economic way the great majority of any potential issues between employer and employee to be resolved.

What happens however when the money starts to run out?

Without doubt these are worrying times for employers and employees alike and redundancy seems to be a phrase on every employer and employee’s lips.  We, as Brighton Employment Lawyers, have as a consequence seen a significant increase in the number of Compromise Agreements concluding in a co-operative way, the issues regarding termination of employment and severance packages by employers.  In these troubling times however it can often be a symptom that an employer is in such major financial difficulties that it calls into question their ability to make payment of those sums due to an employee under any Compromise Agreement.  We are seeing an increasing need in order to counter these concerns to take receipt of all monies due to an employee as compensation for loss of office in advance of concluding the Compromise Agreement and holding such monies to the employer’s order until completion of negotiations.

If you have any concerns regarding your proposed Compromise Agreement, or if you are an employer and are worried about a potential redundancy situation affecting your employees, please contact either Brian Donnan or Alex Watson.