What is a Compromise Agreement?
The law allows in some circumstances for an employer and an employee to end a contract of employment by agreement. It is possible for the parties to agree the terms under which an employee will leave, and this is done by an agreement known as a Compromise Agreement. By signing a compromise agreement, an employee is, therefore, prevented from asserting his rights in both an employment tribunal and/or a County Court.
In order for an agreement to be binding, the following conditions must be satisfied:
a) The agreement must be in writing
b) The agreement must relate to a particular or likely complaint
c) The employee must receive independent legal advice (albeit paid for by the employer)
d) An adviser must be covered by an insurance policy covering the risk of a claim for losses because of that advice
e) The agreement must satisfy certain conditions relating to compromise agreements provided for by law
Talbots Solicitors are well experienced in both the drafting and advising on compromise agreements.
We are happy to see you at either of our Kidderminster or Stourbridge offices in connection with a compromise agreement or you can simply send it by post or email to the Employment Team for review and consultation.
Most compromise agreements provide for the employer to pay a contribution to your costs. Unless the fee stated in the compromise agreement is less than £250 or that the case is very complex, we will advise on the agreement at no cost to you. If the matter is more complex and incurs a charge, we will advise you at our initial consultation.
Disclaimer
This note is for guidance only and should not be treated as a definitive guide or regarded as legal advice. If you need more details or information about matters referred to in the guidance sheet, please seek independent formal legal advice.
Talbots will be only too pleased to help.
