What is a compromise agreement?

What is a compromise agreement?

A compromise agreement is a legally binding agreement following the termination of your employment.  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. Quite often, the compromise agreement will also deal with the notice element in your contract of employment and may provide for a "payment in lieu".
 
Employers are now increasingly using compromise agreements as a mechanism for preventing possible future complaints to a tribunal, especially in redundancy situations. 
 
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.

Do I have to pay and how much does it cost?

No, you won't have to pay anything for one of our solicitors to explain the compromise agreement to you and to sign it off as the employer will be reponsible for your legal fees.  We invoice your employer direct. 

Will it cost me anything for you to negotiate an increase in the compensation payment with my employer?

If you wish us to negotiate with your employer for a possible increase in your termination payment we would be happy to do so.  In that case we would charge you a percentage of any increase achieved.

I need to see a solicitor about my compromise agrement the same day

We can provide an expedited same day service - please ask for details of our costs.

To speak to an employment law solicitor about a compromise agreement call us now on 0845 009 0863 or complete our online enquiry form.

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