Can employer withdraw compromise/redundancy agreement if I have signed it?

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    jtomes jtomes is offline Junior Member
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    Default Can employer withdraw compromise/redundancy agreement if I have signed it?

    My employer is relocating. Because more than 20 people are being been made redundant a 30 day consultation period has been enacted. Some staff have been offered relocation up-front whilst others were placed in pools to compete for the remaining roles. ALL staff were offered enhanced redundancy (either as an alternative to relocation, or after failing to win a remaining role).

    I was offered relocation up-front but chose redundancy. I asked for the paperwork to be done asap to facilitate the handover process. The company provided a draft compromise agreement detailing terms. I had this checked by a solicitor and received a final clean copy from the employer. I signed duplicates of this copy and sent it to head office by courier. This was all done following written directions from my employer. I have copies of all emails.

    The termination date is the end of the month. At the end of last week the competition for remaining roles finished and the employer informed staff of their decisions, offering a selected few relocation. The employer has subsequently realised that the take-up for relocation will be less than they had hoped, and the remaining staff prepared to relocate are not the ones they ideally had in mind.

    Whilst initially saying they would quickly sign my compromise agreement to facilitate the handover process, they have now said that we are 'too early in the consultation process' and they will sign the document at a later date. They stated in writing (be email) that this 'will not affect the terms of my agreement'. The compromise agreement contains a final clause stating that once both parties have signed and dated, the agreement will be binding regardless of whether the agreement says "without prejudice" and "subject to contract" or "draft".

    I have obtained alternative employment begiing at the end of the month directly after my termination date. My employer is aware of this. Can they now withdraw the agreement or change the terms to make me work past the agreed termination date? Many thanks in advance for any help.

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    SarEl SarEl is offline Expert Advisor
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    Almost certainly, yes they can. The agreement is not signed by both parties - it doesn't take effect until they do. If the agreement isn't signed - you have no redundancy termination date. If you have no redundancy termination date then you are not redundant. If you are not redundant then you cannot leave unless you resign. If you resign then there is no redundancy pay due. Sneaky, but clever.

    How long have you worked there, and have you been given a formal redundancy notice with a termination date (not the compromise agreement)?


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    jtomes jtomes is offline Junior Member
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    Unhappy Thanks for the help - even if the news is bad

    Yes. This was also my feeling too. I've worked for the company for 10 years. I have NOT been given a formal notice of redundancy - only the compromise agreement. However, as it stands my existing place of work will be closed at the end of the month.

    Relocation is not an option for personal reasons. My main concern is that the company will reduce the redundancy payment to statutory in a attempt to force relocation.

    Given that more than 20 staff are losing their jobs, and that we are in a collective consultation process, is it not a legal requirement that the employer provides accurate information on how redundancy will be calculated - particularly if the employer asks employees to make life-changing decisions on the basis of that information? Surely it can't be the employer's right to change this information as and when they please? I have, after all, been given a final legal document - not just an example information sheet.

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    I am afraid that it is the employers right to change information - especially the termination date. The only circumstances where they cannot do this is during the period of statutory (not contractual) notice when, if you obtain other employment, you can give counter notice. But the fact here appears to be that you have not been given any notice. You are therefore not redundant. If you start the other job without being made redundant you have resigned. I am sorry but I cannot see that there is anything you can do here - you either stay on or you resign and take the job. This is really low.


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