ADVICE ON COMPROMISE AGREEMENTS: Call today for a free initial chat on 0207 324 6271
What is a Compromise Agreement?
A 'Compromise Agreement' (also referred to as a severance
agreement or redundancy agreement) is an agreement
prescribed by statute to bring to an end statutory claims
(ie unfair dismissal or discrimination) arising out of the
employee's employment or termination of employment. A simple
agreement in writing signed by the employer will not prevent
the ex employee from bringing a claim. In practice,
compromise agreements tend to list out any conceivable claim
that could possibly be imagined.
Basically the employee has to go off and get independent legal advice before signing away his/her legal rights. The employment solicitor should advise the employee on any potential claims arising so that the employee fully understands the legal issues, and the value of any potential claims, before signing away their rights. The employment lawyer who provides the advice must have a form of professional indemnity insurance in place.
The advantage to the employer of getting a compromise agreement is that the employer can be sure the employee will not simply take the money and then sue. The advantage to the employee is that s/he is full advised before settling.
Employees:
As specialist employment solicitors we have advised scores
of employees and helped them to get the best possible
settlement. If you instruct us, as employment lawyers we
will:
1. Advise you on whether any claims arise on the
termination of employment.
2. If so, advise you what those claims might be
worth.
3. In the light of that information, advise you
whether the sum offered is reasonable in the circumstances.
4. Explain the meaning and effect of the agreement to
you and advise you whether anything needs to be amended or
changed.
5. Negotiate on your behalf as required.
The cost of advice will often be covered by the employer, meaning that you may not have to pay anything for this advice personally.
Employers:
Many employers fall into some very
difficult traps when offering compromise agreements and the
taxable position on severance payments is not always
straight-forward. We can guide you through this difficult
process, so call us now to discuss your situation.
For further information see Compromise
Agreements
Reculver Solicitors is authorised and regulated by the Solicitors Regulatory Authority: Firm 405070. Principal: James Carmody. Consultants: Carol Aylott and Kate Henry. Meetings by appointment only.