Compromise Agreements – posted on 23/12/11

Employers usually offer Compromise Agreements when your employment is about to be terminated or you are being made redundant.

A Compromise Agreement is a legally binding document which brings your employment to an end and stops you bringing a claim against your employer in an Employment Tribunal. In return you will usually receive a tax-free lump sum in settlement of any claim which you may have against your employer.

In order to be valid the Compromise Agreement must be in writing, must state the dispute which is being settled and must comply with the required conditions which apply to these agreements. You, the employee, must also have received independent legal advice from a suitably qualified person, such as a Solicitor, insured to provide the advice.

We can provide expert advice on Compromise Agreements to ensure that you receive a fair and appropriate settlement and that all the issues between you and your employer are resolved.

Your employer will make a contribution towards the costs of you obtaining legal advice and if this is sufficient we will invoice your employer direct and you will not receive a bill. However, if the contribution is not sufficient then there may be additional charges as you would be expected to cover any shortfall.

Although you do not have to accept the Compromise Agreement offered by your employer as soon as you have signed the agreement it is legally binding.  Without expert advice you may be waiving many of your legal rights and it is important that you understand the implications before you enter into the agreement.

It is essential, therefore, that you obtain legal advice from specialist employment Solicitors with many years of experience advising on employment matters including Compromise Agreements.

We at Ascot Lawyers can negotiate with your employer on your behalf to ensure that you receive the best possible terms and if necessary, amend the terms of the Compromise Agreement to ensure that you receive a suitable settlement.