A Compromise Agreement is often referred to as a ‘Severance Agreement’ or ‘Redundancy Agreement’. This is an agreement that brings to an end claims such as, claims for unfair dismissal or discrimination arising out of the employee’s employment or termination, other forms of simple agreements signed by the employer will not prevent the ex-employee from bringing a claim. Compromise Agreements tend to be more extensive in terms of listing out possible claims.
It is important to note that Compromise Agreement should only be used in circumstances where there are potential claims to be resolved and where there is a genuine dispute in place between the parties. It is not sufficient enough to rely upon any written or oral agreement between you and the employee as this will not rule out the possibility of ex-employees bringing claims at a later stage. If executed properly however, the use of a Compromise Agreement is most useful as it will remove the risk entirely of any claims being brought at a later stage by an ex-employee.
How we can assist you
- As specialist employment solicitors we will ensure that you will reduce as far as possible the risk of any claims being brought against you
- Our employment solicitors can also ensure that restrictive covenants are provided in this agreement to protect ex-employees from working for a business, taking away business or seeking to take valued employees
- Help you negotiate on the amount offered under the agreement
- Explain the meaning and effect of the agreement to advise you if anything needs amending or changing
- Discuss any additional terms on your behalf as required