Compromise Agreements
What is a compromise agreement?
It is a legally-binding form of contract that is used to settle employment disputes. They are also known as Termination Agreements or Settlement Agreements, but whatever their name they all have the same purpose, which is to get the employee to waive their rights to pursue their legal claims against the employer in return for (usually) receiving a sum of money and/or other benefits. The employer is particularly keen to get the employee to agree not to sue for unfair dismissal, breach of contract or discrimination either in respect of issues arising during the employee's employment or the termination of that employment.
In order to be legally binding a compromise agreement must be in writing and the employee must obtain independent legal advice on the terms of the agreement. There is no set form and employers can add as many or as few clauses as they feel are required. Your employer will usually offer to make a contribution towards the cost of that advice, which may or may not cover all our costs in advising you. We will always give you our best estimate on costs during the initial meeting.
We have vast experience in both drafting and advising on compromise agreements and can usually see you very quickly and provide the advice or recommended amendments in a short period of time afterwards. We are very used to negotiating the terms of compromise agreements.
Please contact us to arrange an appointment. We will need to see the following;
1. The compromise agreement you have been given (obviously)
2. Your contract of employment and all amendments/variations to it
3. Any relevant correspondence
3. Two forms of current identification - your passport/photocard driving licence AND an up to date utility bill (water, gas electricity, council tax etc but NOT mobile phone)