A compromise agreement is a statutory, legally binding document that sets out the terms ending either a dispute or the employment relationship altogether. Compromise Agreements can be completed successfully with Mulberry Finch.
We will advise you on your compromise agreement without you having to make a single journey as most of the process can be completed by email and telephone. There's usually no charge to you because your employer pays our fees. Call now on 0207 118 4100 for advice. Mulberry Finch solicitors are skilled at applying their knowledge to the specific facts of each compromise agreement.
A Compromise Agreement is a written agreement between an employee and employer setting out the terms reached where an Employment Contract is terminated or where an Employment Dispute is resolved. A compromise agreement is a legally binding agreement between an employee and employer put in place to prevent damages or claims in a tribunal or court. This could cover:
Compromise Agreements ensure certainty for both employer and employee. They should deal with all outstanding issues including any wages, bonuses or holiday pay still owing. Allows for an amount of money to be paid to the employee as severance pay.
It is very important that both an employee and an employer understand what they are agreeing before signing a Compromise Agreement. By signing a Compromise Agreement, both the employee and employer will specifically exclude their rights to make a claim against the other party in the Employment Tribunal. As a compromise agreement is a statutory document it is prudent to have a solicitor prepare it.
In most cases an employer will pay or make a contribution towards the legal fees incurred in by an employee receiving legal advice on a Compromise Agreement.
Employers: Can I prepare a compromise agreement by myself?
- It is not advisable to prepare these legal documents without the assistance of a qualified solicitor.
- Due to the nature of compromise agreements, as full and final settlement of any potential future claims it is critical to ensure the drafting is watertight.
Employees: Can I refuse to sign or change a signed compromise agreement?
- You are not obligated to sign a compromise agreement but beware that a claim then brought to a Tribunal may fail. Remember also that the legal fees for entering into a compromise agreement are usually paid for in full by your employer.
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