"Compromise Agreement"

[Mr Veritas]

A friend's employer wants them to leave the company via a "Compromose Agreement" which we understand to be a modern version of Voluntary Redundancy?
Is this correct?
If it is,when they apply for Job Seekers Allowance,will this be denied as they will be deemed to have agreed to leave their company(and not paid for 26 weeks?)
Any advice/suggestions would be happily received.

[Mr Veritas]

Sorry,that should read/mean,that JSA would not be paid for 26 weeks.

[buildersmate]

The period of the individual's contractual notice is the length of time for which JSA will be denied.
If you are saying that this friend is on 6 months notice of termination by his employer, then it is correct.
The reason is simple; part of the total payment negotiated under the Compromise Agreement is required to cover the contractual obligations of the employer - in the eyes of the JSA people, he doesn't become unemployed for another 6 months even though the contract is terminated.

[Mr Veritas]

Thanks very much buildersmate,
You have explained it clearly and logically.
I will pass it on to my friend and let her decide.
My grateful thanks.