What does a compromise agreement contain?

What does a compromise agreement contain?

All of these documents vary in their details according to the specific circumstances however there are certain key matters that most/all agreements cover :-

•amount of compensation to be paid, including any tax-free component

•confidential matters, such as trade secrets and the terms of the agreement

•any assurances given by the employer and/or employee

•the reference that will be given by the employer, if any

•settlement of any claims which the employer may have against the employee

•reason for the termination

•mutual agreement not to make derogatory comments

In the proposed document you will see a long list of statutes under which you are agreeing not to bring claims. The employer must list these statutes in order to be able to enforce the agreement as a full and final settlement. Compromise agreements must be detailed and specific. The courts have ruled that "blanket agreements,” under which the employee simply signs away all their rights to bring a legal claim, is not enforceable.

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