Compromise Agreement Advice for Employees

Compromise Agreement or Settlement Agreement?

Your employer may have mentioned a compromise agreement to you, if you can only find information on settlement agreements, this is because settlement agreements and compromise agreements are the same thing.

Compromise agreement is an old name for settlement agreements, which is still occasionally used incorrectly.

My employer has given me a settlement agreement to sign, what should I do?

If you sign a settlement agreement you will sign away your right to bring claims against your employer.

To protect yourself, contact us first, we can advise you as to whether the terms your employer has offered you are reasonable and if you could be compromised by signing away your employment rights. If the terms are not in your best interests we can negotiate with your employer on your behalf. We can advise you either by telephone or in person. We will need to see your compromise agreement and your contract of employment, in order to give you legal advice

What is the benefit of a settlement Agreement for me?

If your employer has asked you to sign a settlement agreement, the potential benefits for you are that:

Your employer may offer you an enhanced tax free payment for signing the compromise agreement;
The agreement creates a clean break for you and allows you to move on and find alternative employment, saving you time and money on a Tribunal claim
The Agreement ensures your employer provides an agreed reference for future employers so you know what they have written and can approve the reference in advance.

How much will settlement agreement advice cost me?

We don't charge you for advice or negotiations we undertake on a settlement agreement for you. It is usual for your employer to pay a fixed fee for you to get settlement agreement advice. All our costs will be paid by your employer. We will invoice them direct once the matter has concluded. For more information on settlement agreements visit our Employment Lawyer for Settlement agreements page.