A compromise agreement is a legally binding document, between an employer and employee, put in place to terminate an employee’s employment, without the concern of the employee instigating industrial tribunal proceedings, in relation to either the employment or the actual termination.
Usually, an offer of financial compensation (e.g. an enhanced redundancy package) is made in consideration of the employee agreeing not pursue legal action against the employer loyer.
Advice from a solicitor is essential throughout the process. The agreement must be in writing; and the employee must have the compromise agreement, and understand the effect that agreement has on his/her ability to pursue their rights in a tribunal. This has to have been explained by an independent solicitor before the agreement can be considered binding. The solicitor giving the independent advice must also sign the agreement (as well as the employee and employer) and certify that the appropriate advice was provided.
If you are presented with a compromise agreement it is vital that you act quickly as there is normally a tight deadline to sign and return it to your employer. Watson Woodhouse offer competitive fixed fees (which we can normally recover from your Employer without cost to you) and are happy to act quickly to ensure we can meet your Employer’s deadlines. If you have a compromise agreement please call us now on 01642 247656 to arrange a consultation at one of our offices.