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Compromise Argeements


A Compromise Agreement, also known as a Settlement Agreement, is a legally binding document often used in dismissal and redundancy situations. It sets out the terms and conditions reached when a contract of employment is to be terminated; it can also be used to resolve a dispute at work, which can be a difficult and isolating experience.

Employee rights

The contract will waiver an employee’s right to bring a case to a tribunal in exchange for a financial settlement; it is increasingly used by employers to protect against claims for bullying, unfair treatment or harassment.

Professional advice

f you have been offered a Compromise Agreement by your employer, it is a legal requirement that you receive professional advice for the agreement to be binding; the cost for this is usually covered by the employer.

Employment solicitors

We can offer guidance to you to consider the terms of the compromise agreement carefully and advise on whether any financial settlement is appropriate or not, before accepting the agreement.

Media publicity

Tribunal investigations can be time-consuming and expensive and, depending on the case and company, could attract potentially damaging and negative media attention.

Positive results

However, with clear and open negotiation, a compromise agreement can provide an effective measure in ensuring you are adequately compensated for termination of your employment without the need to make a formal claim against your employer.

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