Compromise Agreement Solicitor: What It Means (It's the Old Name for a Settlement Agreement)

If your employer, an older contract, or an HR department has used the phrase "compromise agreement," you might be searching for a compromise agreement solicitor without realising the term has actually changed. Since 29 July 2013, the Enterprise and Regulatory Reform Act renamed compromise agreements as settlement agreements. Legally, they do the same job — you are still just as protected, and you still need the same independent legal advice before signing.

Is a compromise agreement the same as a settlement agreement?

Yes. "Compromise agreement" was the term used in UK employment law before July 2013. Some larger or older-established employers, particularly those with template HR documents that haven't been updated, still use the old name internally. A handful of people also still refer to "compromise agreement solicitors" simply out of habit from earlier in their career.

Whichever name is used, the legal requirements are identical:

• The agreement must be in writing.
• It must relate to a specific complaint or proceedings.
• You must have received advice from a relevant independent adviser (usually a solicitor) on the terms and effect of the agreement, including your ability to pursue your rights before an employment tribunal.
• Your adviser must have professional indemnity insurance in place.
• The agreement must identify the adviser.

Why the wording still catches people out

If you search for a "compromise agreement solicitor" today, most firms have updated their websites to only use "settlement agreement," which can make it feel like your document uses an outdated or unusual term. It doesn't — your employer's HR team is simply behind the curve. The advice you need, and the protections you're entitled to, are exactly the same as for any current settlement agreement.

What a compromise/settlement agreement solicitor actually checks

• Whether the financial offer reflects what you could realistically claim, including notice pay, redundancy pay, and any bonus or commission owed.
• Whether the reason given for your departure is accurate and won't harm a future reference.
• Restrictive covenants — non-compete, non-solicit and confidentiality clauses — and whether they go further than necessary to protect your employer's legitimate interests.
• Tax treatment of the payment, including how much (if any) falls within the £30,000 tax-free exemption.
• Whether it's worth negotiating before you sign, rather than accepting the first offer.

Will my employer pay for advice on a compromise agreement?

Yes, in almost every case. Whether the document is called a compromise agreement or a settlement agreement, UK employers are required to contribute towards the cost of your independent legal advice for the agreement to be valid. At Deen & Co, we recover our fee directly from your employer, so in almost every case there is nothing for you to pay.

Not sure what your agreement is worth? Try our settlement agreement calculator, or read our guide on how much you should get in a settlement agreement.

Talk to a solicitor today

Whatever your paperwork calls it, the same protections apply. Send us your agreement and we'll review it the same working day, in plain English, with no cost to you in almost every case.