COMPROMISE AGREEMENT HELP & ADVICE

Unexpected dismissal

If you are suddenly faced with an employer dismissing you, offering compensation and at the same time trying to get you to sign away your future legal rights, you probably need compromise agreement help from a qualified solicitor. A compromise agreement is essentially a full and final settlement of any claims a terminated employee has against their employer. It is a legally binding agreement that addresses a variety of issues related to the employee’s termination. The main purpose is to establish that the employee has agreed not to bring any legal claims against the employer in return for an agreed upon amount of compensation.

Terms of a compromise agreement

The main issues addressed upon which you may need compromise agreement help by way of specialist advice from an expert employment lawyer are:

• details about the compensation that the employee is to receive
• assurances given by the employer
• assurances given by the employee
• reference that will be given to prospective employers
• what information is to remain confidential
• post-termination restrictions on future employment
• agreement for the employee not to make derogatory comments about the employer
• The employee’s assurance that they will not bring any legal claims against the employer

Requirements for a legally valid compromise agreement

The law sets forth specific requirements that must be met if the arrangement is to be valid. These points can be subject to legal argument and the layman may require qualified compromise agreement help to understand the implications of the document and to this end it is a statutory requirement that such legal advice is obtained prior to signature. To be enforceable, a compromise agreement must:

• be in writing
• relate to a specific complaint that the employee has or may have against the employer
• only be entered into after the employee has received legal advice from a qualified adviser
• include the name of the adviser
• contain an affirmation from the adviser that the required advice has been given
• affirm that all of the requirements for a valid compromise agreement have been satisfied

Benefits of a compromise agreement

Entering into a compromise agreement is a quicker and more cost-effective way to reach a financial settlement with your employer than going before an Employment Tribunal. It guarantees that you will receive a set amount of compensation, whereas there is no guarantee an alternative claim will be successful in an Employment Tribunal. The employer benefits because they are assured that they will not be subjected to any employment-related claims in the future.

Decision not to sign the agreement

Costs of obtaining legal advice

Usually, it will cost you nothing to obtain qualified compromise agreement help. The expenses related to obtaining legal advice are typically covered by the employer.

Date of payment

The exact payment date will be set forth in the terms of the agreement. Generally you will receive your compensation within one to two weeks of the agreement being finalised.

Taxes on compensation

The first £30,000 of compensation is tax-free. Any compensation you receive in excess of £30,000 will be taxed in the normal way. Most compromise agreements include a tax indemnity clause which states that any taxes owed are the responsibility of the employee.

Benefits of instructing a solicitor

Signing away your legal rights to bring a claim against your former employer is a very serious decision. Compromise agreement help from solicitor can assist you to determine whether or not signing is in your best interest. There are many other benefits to consulting with a solicitor:

• a solicitor can explain all of the terms of the agreement in plain English, so you understand exactly what you are agreeing to
• if you are not satisfied with the agreement, a solicitor can negotiate for better terms on your behalf
• by considering the history of your employment, such as job title and salary, a solicitor can determine whether the amount of compensation being offered is fair
• a solicitor can identify the possible legal claims you have against your employee and advise you as to whether it would be in your best interest to pursue them