Lawyers Leicester

COMPROMISE AGREEMENTS SOLICITORS & LAWYERS LEICESTER

Compromise agreements defined

Compromise agreements are commonly given to employees following the termination of their employment.  Compromise agreements are usually offered to:

• Employees who have been made redundant
• Employees who do not wish to return to work after taking maternity leave
• Employees who are medically unfit to continue working
• Employee who have left due to unresolved grievances

In exchange for a payment of a sum of money and certain benefits, the employees agrees not to pursue any legal claims they may have through an employment tribunal.  They are legal agreements so signing one will in fact mean you will be barred from bringing further claims against your employer.

Payments given under a compromise agreement are tax free up to £30,000.  To provide an adequate disincentive for employees to not pursue legal claims, it is usually the case that the amount given than statutory requirements if the termination is a result of redundancy.

It is not always immediately obvious whether you have been offered a compromise agreement or the labelling used.  Confusingly, a compromise agreement might be labelled a ’severance agreement’.  If you unsure of what you have, check whether there is any requirement for you to seek ‘independent’ legal advice, which is a requirement we will discuss below.

Why you need legal advice

For a compromise agreement to be legally valid, it is absolutely essential that the employee seeks independent legal advice.  Independent legal advice can include trade union representatives and solicitors.  As part of the agreement, provisions for the employee’s legal costs are often included so really have little to lose by consulting a solicitor.

How we can help

Our West London solicitors have years of experience in negotiating the best deals possible for clients who have been offered compromise agreements.  In our experience, the underlying issue which led to the agreement being offered does not always materially impact on the amount that you can get.

In addition to providing advice on the agreement itself, we will advise you on all the options available to you.  If, for example, we believe your employer created a working environment that made it impossible for you to continue working, you could have a claim of constructive unfair dismissal and we will advise you on your right to pursue such a claim through an employment tribunal and the likely outcomes.