Econ Info

At an old company I used to work for they were determined to get rid of one particular member of staff as they were not working as hard as they needed yet were not doing anything that could lead to a disciplinary. After a couple of meetings they put a compromise agreement to the employee basically offering a pay off. It was basically redundancy pay with the agreement not to take the company to court and affectively end any chance they have of more money.

The compromise agreement was not quite what the employee wanted so after some time to consider he asked for amendments which were made and they both signed off on the deal. As a result this particular employee went off and started his own company. He is last I heard doing well and it seems looking back that the split was good for both parties.

While I do not know the details behind the compromise agreement I do know roughly how they work because of this situation. They negotiated in order to get him to sign. That is what they wanted as they wanted to get rid of the employee without the risk of being sued for it. The employee was happy to get out so after a couple of changes he signed and both parties moved on.