If you’re an employer who needs a Compromise Agreement drafting, we can draft one for you. Or if you’re an individual who has been presented with a Compromise Agreement by your employer, we can give you clear, expert advice on its content.

What’s a Compromise Agreement?

A Compromise Agreement between an employer and employee is a legally binding agreement that brings employment to an end. It’s usually offered either during or following the ending of employment.

The Agreement allows for a clean break in the employment relationship where the employee agrees to waive their right to pursue claims in an Employment Tribunal in return for an agreed sum of compensation.

It’s essential that an employee takes independent legal advice on the Agreement for it to be valid.

If you’re an employer

Compromise Agreements can help you resolve issues in the workplace. You can also use them to make sure employees leaving your company can’t make claims against you.

Before offering an employee or employees Compromise Agreements and compensation, you should identify where the risk of any future claim may lie and assess your potential liability. It may also be wise to use a Compromise Agreement where an ex-gratia payment is being made, as in the case of an enhanced redundancy. This will make sure that no further claims for compensation can be made against you and/or your company.

We offer a comprehensive Compromise Agreement advice service to give you total peace of mind. In the first instance, we’ll work with you and explore the background issues behind the Compromise Agreement. We’ll help you to decide whether it’s appropriate to offer a Compromise Agreement where there may be possible claims, before helping you with what would be a suitable settlement sum.

Call us now to discuss a quote for a well-drafted, tailor made Compromise Agreement.

If you’re an individual

Compromise Agreements are binding documents. If you’ve been offered a Compromise Agreement, your employer has to make sure you get independent legal advice before signing. If not, the agreement will not be enforceable. The reason behind this is to make sure you fully understand the implications of the agreement. Your employer should pay a fixed contribution towards the cost of this legal advice.

In most straightforward cases, the contribution should be enough to cover all the legal costs. If we think you have a claim, we’ll assess its potential value and whether the compensation your employer is offering in your Compromise Agreement is a fair settlement sum. If you need us to, we can negotiate with your employer to increase the package. You may need to pay additional legal fees or they may be covered by your employer.

Do you need advice on your Compromise Agreement? Call us now to talk through how we can help you.