Compromise Agreement

Compromise agreements means where an employee agrees not to make a claim against their employer in return for a financial settlement. They are becoming increasingly common as employers seek to protection from potential legal action.

A Compromise Agreement is not legally binding unless you have been given legal advice by an independent solicitor.

You need to be sure that the amount offered by the agreement is fair and reasonable and that the restrictions imposed on you by the agreement are not harsh or unreasonable

It is important that as an employee, you are obtain proper independent legal advice in respect of your Compromise Agreement.

Easylawyers will check the amount of compensation being offered by your employers and review the text of the draft Compromise Agreement.

No legal cost to you

It is common practise that the employer will pay our legal fees in respect of advising you on the Compromise Agreement. Hence, there will be no extra charge to you.

You do not have to visit our offices in London (but we happy to meet you). We can correspondence by telephone and email. You can contact us by telephone and the compromise agreement can be emailed or posted between us. As a result our clients are from all over the country.

As a regulated Solicitors firm we have years of experience of advising employees on compromise agreements.

Below is a brief overview of the law on this subject.

It is possible for an employee and his ir her employer to agree the terms under which an employee will leave their employment.

An employee will not be prevented from pursuing a claim in the Employment Tribunal, even if he or she accepts a sum of compensation in supposed full and final settlement of any claims that may be brought before the Employment Tribunal, unless:

the agreement is in writing

the employee has received independent legal advice from a relevant adviser (usually a solicitor) on the terms and effect of the proposed agreement and its effect on the employees ability to pursue any rights before an Employment Tribunal

the independent advisor has a current contract of insurance, or professional indemnity insurance, covering the risk of a claim against them by the employee in respect of that advice

the agreement identifies the adviser

the agreement states that the conditions regulating Compromise Agreements have been satisfied; and

the agreement relates to a “particular complaint” or “particular proceedings”. In this respect the;

agreement must identify the particular complaints or proceedings being compromised, and it is important to note that an employee cannot agree to waive claims that he or she has not raised or have not yet arisen.

If you would like us to review your Compromise Agreement please contact us at easylawyers on
0207 183 4555 or email us at info@easylawyers.co.uk