A compromise agreement is a
legally binding agreement either following the termination
of your employment, or to bring it to an end. It usually provides
for a severance payment by your employer, in return for which
you agree not to pursue any claim you may have to an employment
tribunal. Usually, the compromise agreement will also deal
with the notice element in your contract of employment whereby
you a paid in lieu.
At LZW, we are very experienced at advising in relation to
compromise agreements and we are able to turn these around
quickly and very often remotely- wherever you are based in
the UK. This is usually achieved by direct e-mail and telephone
contact with you, the HR personnel at your employer, and your
employer's legal advisers if necessary. We are, of course,
always happy to meet with you at our offices if you prefer.
Employers are now increasingly using compromise agreements
as a mechanism for preventing possible future complaints to
a tribunal. This often applies to redundancy situations, but
can be for any reason - such as where the employer has not
followed a fair dismissal procedure, or where there has simply
been a breakdown in the relationship with an employee.
Compromise agreements are recognised by statute and are the
only way a claim can be validly resolved without tribunal
proceedings having been initiated. You must have the compromise
agreement explained by an independent solicitor before the
agreement becomes binding. The solicitor giving the advice
must also sign the agreement and certify that the appropriate
advice has been given.
Compromise agreements can be written in very legalistic language
and can refer to sections of Acts and Regulations which you
may never have heard of. Because of this and because it is
important that you understand the effect of the agreement,
it is a legal requirement that you get professional advice
on what the agreement means. It is also a legal requirement
that your adviser signs the agreement to confirm that advice
has been given.
Legal costs
Your employer will normally contribute towards the costs of
your legal advisers in connection with the advice you receive.
At LZW, it is very rare that we would charge more than what
your employer is prepared to contribute in the way of costs.
Other aspects of UK employment
law for employees include:
Landau
Zeffertt Weir Solicitors