If your employer has offered you a Compromise Agreement to terminate your employment, you will need legal advice before signing.
At Advantage Employment Law, our solicitors regularly advise clients on Compromise Agreements. In the majority of cases, our fees are paid in full by the employer.
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0845 257 1075
You may also find it helpful to read the information below.
What is a Compromise Agreement?
If you reach an agreement with your employer about the termination of your employment, it is important to have the details in writing and for the agreement to have legal effect.
A Compromise Agreement is a legally recognised and safe way of terminating your employment and finalising a settlement. It minimises the danger of future complications or problems arising after the end of the employment.
Do you need a Compromise Agreement?
If an employer does not comply with the law in terminating your employment, you could complain to an Employment Tribunal that the termination was an unfair dismissal. This could result in an award of compensation.
The only way an employer can be sure that you will not complain to an Employment Tribunal after the termination of your employment is for you to sign away your right to do so.
This is done in a Compromise Agreement and has the effect of turning the agreement into a "full and final" settlement of any claims that you may have had in respect of your employment.
Should you sign the Compromise Agreement?
There is no legal obligation on you to sign a Compromise Agreement. If you do not sign, you will be free to pursue any employment related claim that may be appropriate, including unfair dismissal.
However, it is often preferable to resolve any potential dispute without bringing Employment Tribunal proceedings. We will be able to advise you on the merit of any proposed settlement and whether you should consider Employment Tribunal proceedings. Often, we can negotiate a higher figure.
Once a Compromise Agreement has been signed by all parties, it becomes a legally binding Agreement and can be enforced through the courts or Employment Tribunal if necessary.
Please feel free to contact one of our solicitors if you require advice on a Compromise Agreement. |
