Compromise Agreements

Practical advice

A compromise agreement is a legally binding agreement following termination of your employment. It usually provides for severance payment from your employer in exchange for which you agree not to pursue your claim at a tribunal.

Employers are now using them more frequently as they are recognised at law as the only way a valid claim can be resolved without tribunal proceedings being started.

A compromise agreement allows an employment dispute, or potential dispute, to be concluded relatively quickly and privately. It is normally in the interests of both the employee and the employer for the terms of the compromise agreement to remain confidential, and therefore a confidentiality clause is often included. Typically, a confidentiality clause in a compromise agreement will only permit the employee to discuss the terms of the agreement with professional advisors and close family members.

A compromise agreement will also often include terms which prevent both the employer and the employee from saying anything derogatory about the other and so ensuring a clean break between them.

There are certain claims which cannot be settled by means of a compromise agreement and these include claims relating to personal injury and the right to statutory maternity, paternity or adoption pay.

It is compulsory to take independent legal advice before the agreement becomes legally binding - in fact, the solicitor giving the advice has to sign and certify the agreement.

If you have been offered a compromise agreement, Employment SOS have a team of experienced lawyers to offer advice and assistance.

In most instances the legal advice should cost you nothing as our costs will usually be paid by your employer. We will discuss this during our preliminary discussions.

For an assessment of your situation please complete and submit our questionnaire by clicking here. We will respond within 5 working days.

Tel: 0845 293 2729 . Email us . The Foundry, Euston Way, Telford, Shropshire TF3 4LY