What is a ‘severance agreement’ or a 'redundancy agreement'?

A ‘severance agreement’ or 'redundancy agreement' is another term for a Compromise Agreement. If you are at risk of redundancy – or have been made redundant – some employers offer a Compromise Agreement. This is a legally binding agreement where you and your employer agree the terms of your redundancy.

Importantly you are giving away any claim you may have if you have been unfairly selected for redundancy or a proper procedure has not been followed. In return you receive compensation.

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