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Have you been offered a Compromise Agreement to terminate your employment?
If so, you will need to take legal advice from an independent solicitor before signing.
Call us now on 01604 611980 for a FREE Initial Consultation. We specialise in employment law and Compromise Agreements and have many years of experience dealing with them successfully on behalf of our clients. Contact us to discuss your needs and we will offer you effective advice in a friendly and helpful manner.
Click here to download our guide to FIVE THINGS YOU NEED TO KNOW ABOUT COMPROMISE AGREEMENTS.
Five Things You Need to Know About Compromise Agreements
1) What is a Compromise Agreement?
A Compromise Agreement is the legally binding agreement relating to the termination of your employment.
They are widely used by employers to achieve a full and final settlement and to ensure that you cannot, in the future, complain to an Employment Tribunal that the termination of your employment was unfair.
You must have the agreement explained and signed by an independent solicitor before the agreement can be legally binding – in the vast majority of cases this will be paid for by your employer – but you are free to choose the independent solicitor.
2) What do they include?
They vary on content but most will detail your pay including holiday pay up until termination and where appropriate a settlement sum that is compensation for loss of employment.
It is likely to include requirements relating to the return of property belonging to the employer, issues of confidentiality and a reminder of competition and solicitation clauses in your original contract of employment.
3) How much do they cost?
In the majority of cases it will cost you nothing as the fee for an independent solicitor to review and explain the agreement will be covered by your employer.
In some more complex cases there may be further costs, but if we were to act on your behalf we would advise you of any likely additional costs.
4) You don’t have to sign it!
Although a Compromise Agreement can be an amicable and efficient way of officially terminating your employment with an employer, it is important to remember you do not have to sign it.
But you must make yourself aware of the implications of signing, or not signing. Therefore you should first take advice from your independent solicitor.
In some cases the terms of the agreement can be improved through negotiation – we are experts at this and will be able to advise you of possible opportunities to amend the agreement.
5) Your solicitor is your choice!
Remember, in order to make a Compromise Agreement legally binding, you must have it reviewed and explained to you by an independent solicitor.
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