A Compromise Agreement or Settlement Agreement is a legally binding agreement entered into following or in anticipation of, the termination of your employment. It usually provides for a compensation payment to you by your employer, in return for which you promise not to pursue any claim you may have against them in an employment tribunal or other court. They are usually used by an employer as a ‘quick fix’ to avoid a possible unfair dismissal or other claim.
A valid settlement agreement is legally binding and prevents you bringing claims. It is therefore imperative that you ensure that you are being adequately compensated for all claims that you have and that the agreement deals with any other issues that are important to you. For example, you may want an agreed form of reference.
We can draft settlement agreements and negotiate terms on your behalf. We give clear, concise and impartial advice. We will explain to you what potential claims you have, what those claims are potentially worth and whether or not the settlement agreement is fair.
You do not want a solicitor who simply ‘signs off’ on a settlement agreement without giving you proper advice first.
Normally your employer will pay your legal costs in relation to taking advice on a settlement agreement and you are entitled to instruct any solicitor you want to, even if your employer “recommends” a lawyer to you.