In these bad economic times, the unfortunate truth is that many people are faced with increasing amounts of job uncertainty.
And with the British Government aiming to placate business leaders and facilitate an economic growth through a more mobile workforce, compromise agreements are being pushed as a means of removing staff who no longer fit the ethos of a company.
And of course, for an employee who is facing the spectre of unemployment, the advent of compromise agreements isn't a particularly welcome development.
And although it does undoubtedly give a business more power to fire staff as they wish, as a worker you are still entitled to a number of employment rights, and you need to ensure that the agreement suits you.
Here's what to look out for and remember if you're faced with a compromise agreement: Get legal help First and foremost, if you're threatened with the possibility of a compromise agreement, it's very important to seek the advice of a solicitor who specialises in employment law.
They will be able to advise you on whether the amount of money you're being offered is satisfactory.
And although it's not legally-bound, most employers will pay for this advice, so ask if they will pay for this cost.
Think about a non-derogatory clause Depending on the industry you work in, a clause such as this (which will stop your employers giving you a bad reference to future employers) will be more important than the amount of money you're paid out.
By ensuring it's not long until your next job with a good reference will mean that you're secure in the long-term.
Furthermore, a compromise agreement will limit the chances of you leaving under a cloud, increasing your chances of your name being sullied in the industry.
Ensure it is tax free Unlike regular pay, any money you're given as part of the agreement must be completely tax free - although this will not include any excess holiday pay and owed wages.
So, ensure that any money that you're owed isn't skimmed off the top.
You may still make a claim It's true that a compromise agreement means that you can't make a further claim for unfair dismissal, but remember that if you are later informed of the possibility of a claim for personal injury, owed pension payments or a breach of the compromise agreement, then you can still make a claim against the employer.
You don't have to sign it It's important to remember that a compromise agreement isn't mandatory, and if you think that the terms aren't acceptable, you can reject them, either forcing your employer to offer you a better deal, alternative training and employment or redundancy payment.
You may also be able to open an unfair dismissal claim against them if no agreement is reached - something which is admittedly prohibitively expensive for both parties.