Compromise Agreements

A compromise agreement sets out a full and final settlement for the benefit of both employee and employer when an employment contract is ended. Compromise agreements secure a 'clean break' for both employer and employee providing a practical and effective solution to the ending of a contract.

Advantages of Compromise Agreements:

  • Avoids costs of tribunal proceedings
  • Sets out terms agreeable to both employer and employee
  • Employee has the certainly of a settlement sum
  • Employer is protected against employment claims

If you are preparing to offer or are offered a compromise agreement, you will need legal advice on whether the terms are acceptable or whether they could leave you exposed to future employment claims. It is customary for an employer to pay the legal costs incurred by the employee, but only if the employee enters into the agreements and the employer may limit costs to a specific amount.

Call Lawson-West's specialist employment advisor, Ashley Hunt, on 0116 212 1119 to discuss your proposed agreement and whether its terms are acceptable.