FAQ
What is a compromise agreement?
Employers often provide compromise or severance agreements to employees in redundancy and other situations where employment is terminated. Compromise agreements can be useful in circumstances where the employer wishes to avoid the publicity, costs or uncertain outcome of a tribunal or court case.
A compromise agreement is a contract you are asked to sign by your employer in which you agree not to bring any employment claims, usually in return for a payment of compensation. It is a legally recognised and safe way of terminating someone’s employment and minimizes the risk of complications.
What will I have to pay?
It should cost you nothing.
Usually your employer will pay your legal costs.
If there are more complex issues, you may need more detailed legal advice.
The cost of this will always depend on your individual circumstances, a written fee estimate will be provided.
We represent employees at competitive rates and would always advise you in advance of your options and any additional cost before we carry out any work for you.
Why do I need independent advice?
Under employment legislation, a compromise agreement is not binding unless you have taken advice on it from an independent adviser. Usually this means a solicitor specialising in employment law. This is why your employer normally offers to contribute to your costs of obtaining independent advice.
How long will it take?
With our Fast Track service we will respond to your request within 24 hours. Finalising agreements depends upon individual circumstances but we regard all compromise agreements as matters of urgency.
What will happen if I don’t sign?
Refusing to sign a compromise agreement would mean that there is no agreement between you and your employer and you would be free to pursue any employment related claim that may be appropriate. This however means that your employer would not pay you a compensation package and you will need to consider taking the case to an Employment Tribunal. This is a decision which requires careful thought and advice.
We will be able to advise you in respect of any Employment Tribunal claim that you wish to bring, including unfair dismissal, breach of contract and discrimination.