Negotiating a compromise agreement?
A compromise agreement covers many issues between you and your employer. Usually, the main concern is the financial package and you should focus on the money that is to be paid in addition to your contractual entitlement. Make a list of the benefits that are the most important to you (for example, continued private health care or the use of company property after the end of your employment) and check if they are offered in the compromise agreement. If possible, try to find out what the company's general compromise payment policy is and ask colleagues what they are being offered.
Some parts of a compromise agreement cover non financial benefits and these might, in the long term, be even more important to your career. For instance, it might be useful to agree a standard reference to be included in the compromise agreement and even a non-derogatory clause, to aid you in securing new employment. Ask your employer if you could provide the first draft of the reference letter.
Always take notes at any meetings where the compromise agreement is discussed and never be pressurised to agree to the package - simply tell your employer you need more time to think about what they have offered. You then have the opportunity to seek legal advice from an experienced employment solicitor.
Although, a compromise agreement is not legally binding before it is signed off by you and an independent legal advisor, it is advisable to keep the agreement "open", so that the employer cannot later argue from a moral stand point that you agreed to the compromise agreement initially offered.
If appropriate, gather all evidence regarding breaches of your employment rights. It is always better to prepare for the worse case scenario of bringing an employment claim as early as possible. To know and understand your rights contact Stone Joseph for tailor made advice, and please visit our website http://www.employmentlaw.co.uk/ and http://www.employmentsolicitors.co.uk/ for an overview of employment law. It is possible that your employer may exclude you from the work place so discreetly keep any evidence safe. It can sometimes be useful to use the evidence at any compromise meetings but this would have to be handled delicately and only after consulting with Stone Joseph.
You should consider how you wish to position yourself in negotiations - sometimes the sympathy and goodwill you have with senior executives can be used to increase the compromise agreement. The evidence of any breaches of your employment rights may increase the severance package, although it may then alienate senior executives. Consider carefully, when and if, you should use these complaints. Remember, former employers can have an interest in keeping you happy, so you may have some room to negotiate.
As all compromise agreements require independent legal advice, please give Andre Pungerl or Ruth Neil at Stone Joseph a call (on 0207 8549098) at the earliest opportunity, so that you can receive advice tailored to your circumstances.