Compromise Agreements


If you have been offered a compromise to terminate your employment, our specialist Employment Law Department can provide a fast, effective and efficient service to advice you in relation to your compromise agreement
 

We offer emergency appointments where we can provide you with specialist advice very quickly. In some cases we can provide same or next day advice. 

Frequently Asked Questions

What is a Compromise Agreement

 

A compromise agreement is a legally binding agreement which is made following the termination of your employment and/or an agreement to bring a dispute with your employer to an end, i.e. dispute concerning unpaid wages, or equal pay. 

If your employment is being terminated i.e. you are being made redundant or you are being dismissed, entering into a compromise agreement can be in the best interests of both the employer and the employee.


If you have a dispute with your employer a compromise agreement can be a good way to bring the dispute to an end without causing a breakdown of the employment relationship.


A compromise agreement can ensure that an employee is adequately compensated without the need to bring a claim in the Employment Tribunal which can be costly and takes a long time.

 

 

 

 

 

 

 

 

 

 

 

 

How much will it cost me to seek legal advice?

 

Usually the employer will pay for the employee to obtain independent legal advice. If your employer agrees to pay your legal cost, it will cost you nothing to obtain legal advice from Deen & Co. in relation to the compromise agreement.

We will not charge you more than the amount your employer has agreed to contribute.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What is covered by a Compromise Agreement?

 

A Compromise Agreement will set out a number of clauses. The compromise agreement may be a clean break between the employee and employer and will usually stop the employee from bringing any claims against the employer in the Employment Tribunal.Â


An employer may wish to include a number of additional clauses in the compromise agreement. They may wish to include the following;

• Confidentiality Clause
• Non-derogatory Clause

• Restrictive Covenants

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Will I pay tax on the compensation I receive?

 

This will depend on what you are being paid. 

For example, are you receiving just a settlement sum, or are you also being paid outstanding salary, outstanding holiday or notice pay. 


Some of the money is likely to be tax free and some may be taxed.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Do I need Independent legal Advice before signing my compromise agreement?

 

There are a number of legal requirements which must be fulfilled to make a compromise agreement binding.  One of the requirements is that the employee must receive independent legal advice, i.e. from a Solicitor,
 
A compromise agreement can be written in very legalistic language and can refer to statutes and regulations which you may never have heard of. It is important that you understand the effects of the agreement so that you know exactly what you are agreeing to compromise. It is also a legal requirement that your advisor i.e. the Solicitor, signs the agreement to confirm that advice has been given.
 
We are experienced in providing specialist, independent legal advice in relation to compromise agreements and will ensure that you receive relevant and accurate legal advice in relation to your compromise agreement.