Former workers at the Boulton and Paul factory in Maldon should hear early next month about details of an out-of-court cash settlement.
Workers belonging to the Union of Construction and Allied Trades and Technicians (UCATT) are expected to receive a share of £50,000 after signing a deal with Rugby Joinery.
Timber products firm Boulton and Paul was bought by The Rugby Group in February 1997 with the loss of around 200 jobs.
Union members were hoping to get a share of a £50,000 settlement at Christmas, but red tape at mediators ACAS has led to delays.
Ron Mckay, a UCATT regional officer, said the two sides had agreed terms and signed on Tuesday after the arbitration service ratified the agreement.
He said: "We hope to get the money within ten days of signing the agreement, then we begin sharing it out among members."
Union bosses struck a compensation deal with Rugby after more than 18 months of talks. The negotiations took place instead of going to an industrial tribunal.
An industrial tribunal hearing was planned under the Transfer of Undertaking Protection of Employment Regulations (TUPE), on grounds there was no union consultation and a failure to consult under collective redundancy.
But an agreement was reached in principle at the end of last year without admission of liability by Rugby.
About 140 workers will share £50,000 and will be entitled to around £360 each.
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