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Compromise Agreements

A Compromise Agreement is an agreement that brings to an end any claims or disputes (such as breach of contract, unfair dismissal or discrimination) arising out of an employee's employment or termination of employment. A Compromise Agreement is necessary because a simple agreement in writing signed by the employee will not prevent that employee from bringing a claim.

The advantage of a Compromise Agreement to the employer is that they can be sure that an employee will not simply take an agreed sum of money and then sue for more. The advantage to employees is that they can receive an agreed settlement package which allows them to terminate their employment with sufficient financial security and with a clean record of employment. The employee is also protected by the fact that they must take independent legal advice before signing away their legal rights.

Help for employers and employees

If you are an employer or an employee, you can take advantage of Glanvilles extensive experience and expertise with regard to Compromise or Settlement Agreements.

For the employer, we can take you through the entire process, from the discriplinary/dismissal procedure itself through to the negotiation and conclusion of the settlement package and Compromise Agreement. We pay particular attention to the proportionatily of the Compromise Agreement when compared to the ongoing cost and time implications of the employee in question.

For the employee, we can make sure you get the best possible settlement. This will include:

• Advice on whether any claims arise on the termination of employment

• Advice on what those claims might be worth

• Advice on whether the sum offered is reasonable in the circumstances

• An explanation of the meaning and effect of the agreement to you and advice on whether anything needs to be amended or changed

• Further negotiation on your behalf as required

The cost of advice will on most occasions be covered by the employer, meaning that you may not have to pay anything for this advice personally.