Dundee University has reached an agreement with the University and College Union (UCU) in a long-running dispute over compulsory redundancies at the cash-strapped institution.

The union has staged a series of strikes, the most recent for five weeks in September, against compulsory redundancies at the university.

The Dundee UCU said it would it would suspend any industrial action related to the dispute for the rest of the year as a result of the agreement.

The joint agreement includes the implementation of a final enhanced voluntary redundancy scheme (VR2) and avoiding compulsory redundancies "wherever possible."

The union said it would also withdraw its proposed judicial review proceedings relating to previous decisions by the university's governing body and "associated governance matters".

The joint agreement said that an assessment would be made by the university over its financial situation following VR2.

The union would retain its right to take strike action if the university implemented compulsory redundancies.

The agreement said: "Upon conclusion of this organisational restructure, the university will implement a moratorium on any further institution-wide voluntary redundancy or compulsory redundancy programmes until August 2028."

In return, Dundee UCU will not "initiate, support, endorse or pursue industrial action, including action short of a strike" relating to voluntary or compulsory redundancy programmes until the same date.

The agreement was approved by the university's governing body on Tuesday.

The dispute began two years ago when the university announced a £30m deficit.

Since then, 675 jobs have been lost through voluntary redundancy, and the university has received bailouts of £40m from the Scottish government and £22m from the Scottish Funding Council.

The latest wave of cuts was announced in June proposing to close 187 posts, but this fell to 154 job losses by August.

Both parties said the new agreement marked "an important step" towards concluding the "current organisational change programme".

They said it would provide a basis for "greater certainty, stability, and constructive engagement across the university community."

The VR2 scheme will be available to staff in at-risk groups.

The agreement said: "The proposal provides for terms based on the contractual entitlement associated with academic compulsory redundancy arrangements, which include a 12-month notice period and statutory redundancy pay.

"However, under VR2, the intention is that colleagues would work six months of notice and receive the remaining six months as a payment in lieu of notice (PILON), thereby allowing an earlier departure while maintaining broad parity with previous voluntary redundancy arrangements."

The agreement said that both parties recognised the past two years had been "exceptionally challenging for students and staff".

It added: "While there have been significant differences of view, there is a shared recognition that the university community now needs clarity about the future and a renewed focus on delivering for students, supporting colleagues, and securing the long-term success of the institution."