A Compromise Agreement is a particular type of contract which is legally binding between an employer and an employee or ex-employee.
A Compromise Agreement offers a financial settlement in exchange for agreeing that an employee or ex-employee will not pursue any claim they may have to an employment tribunal and in some case additional claims.
Compromise Agreements are particularly used in redundancy situations for preventing possible future complaints to an employment tribunal.
The law requires that an independent adviser, usually a solicitor, must advise on the effect of a Compromise Agreement. Generally the solicitor providing the advice will generally also sign the compromise agreement to certify that the appropriate advice on the effect of the Agreement has been given before the Agreement becomes binding.
Compromise Agreements are recognised by statute and is the only way a claim can be legally binding without employment tribunal proceedings being commenced.
At Thompsons our specialist employment lawyers can offer the independent legal advice required to conclude your Compromise Agreement quickly and effectively. Our fee would be charged as provided for in your Compromise Agreement. Generally your employer will be responsible for advice. No charge would be made to you for this service.