Compromise Agreements

What is a Compromise Agreement?

A Compromise Agreement is a formal legal document which, once signed, prevents claims which are "compromised" in the Agreement (such as unfair dismissal, sex discrimination) being brought against the employer in the future.

What do I need to do with it?

Contact a legal adviser who is qualified to advise on Compromise Agreements, such as a solicitor. If you are not advised by someone who is appropriately qualified, the Agreement will be invalid.

What about legal fees?

Normally, the employer pays a contribution towards legal fees which is often enough to cover legal fees. If negotiation is required and/or changes have to be made to the Agreement, the contribution may not be enough, but your adviser should let you know.

Aren't all compromise agreements standard?

No, they aren't. Compromise Agreements vary and some will be more restrictive than others. For example, if you have been injured at work or been off work with work-related stress, the Agreement may try to prevent claims for personal injury which may not be in your interests.

Are the payments in the agreement tax-free?

Some payments, such as redundancy and ex-gratia payments may be tax-free up to £30,000 but others will not be, such as notice pay and holiday pay.

Can I just go to any solicitor?

Yes, you can, but someone who specialises in employment law will be able to ask the appropriate questions and know the relevant law to advise you whether or not the settlement offer is sufficient and the types of claim you may have so that you make an informed decision.

What next?

Call 01462 418629 for a free, no obligation consultation which can be in person, after normal work hours, or by phone and email if you prefer.

I will explain the issues you need to consider regarding your case, give you an initial assessment of your case and the potential value of your claim.

I will also explain the various methods of funding your legal expenses.