What is a Compromise Agreement?
After the negotiation of a compromise package on departure of an employee, an agreement is concluded on the employee signing a compromise agreement. It is an agreement that allows "full and final settlement" for certain claims between an employer and employee.
One of the foremost purposes of a compromise agreement is to prevent employees from bringing or pursuing a claim before the Employment Tribunal.
Statute requires compromise agreements to meet the following conditions:-
The agreement must be in writing;
- It must relate to a particular complaint(s) within their contemplation;
- The employee must receive independent legal advice;
- The advisor must have in force a professional indemnity policy;
- The agreement must identify the adviser;
- The agreement must state that the conditions relating to compromise agreements have been satisfied.
These are features common to all compromise agreements but your compromise agreement should be negotiated and drafted to your circumstances. So, contact at the earliest opportunity either Andre or Ruth at Stone Joseph solicitors (0207 8549098), a specialist boutique employment practice to advise on what are the most relevant and important issues for you.