compromise agreements for employers

Why ask an Employee to sign a Compromise Agreement?

It is most common for an employee to be asked to sign a Compromise Agreement when their employment has been terminated, or is about to be terminated.
The benefit for an Employer is that a Compromise Agreement gives peace of mind. After signing a Compromise Agreement an employee will not be able to bring claims in an Employment Tribunal arising from the termination of their employment.
When negotiating a compromise agreement, the draft agreement and any related correspondence should be marked “without prejudice”. This is because if a settlement is not reached the employee cannot refer to the attempted settlement in the courts or tribunals if they later bring a claim.

Is a Compromise Agreement the solution to protect your business?

For a compromise agreement to be effective, the employee must have received independent legal advice. For this reason and because a Compromise Agreement needs to meet certain conditions before it is legally binding you should take legal advice and ensure that the Agreement is drafted by a specialist Employment Law Solicitor.

How much will it cost?

We can advise you in relation to the terms on which the Compromise Agreement should be offered, draft a legally binding Compromise Agreement for you and deal with any negotiations on your behalf with the employee’s solicitor, all for a fixed fee. Please contact us for a fixed fee quotation and to discuss how we can help you.