What is a Compromise Agreement?
After the negotiation of a compromise package on departure of an employee, an agreement is concluded on the employee signing a compromise agreement. It is an agreement that allows "full and final settlement" for certain claims between an employer and employee.
Statute requires compromise agreements to meet the following conditions:-
- the agreement must be in writing;
- it must relate to a particular complaint(s) within their contemplation;
- the employee must receive independent legal advice;
- the advisor must have in force a professional indemnity policy;
- the agreement must identify the adviser;
- the agreement must state that the conditions relating to compromise agreements have been satisfied.
These are features common to all compromise agreements but a compromise agreement should be negotiated and drafted to fit the circumstances. So, contact at the earliest opportunity either Andre or Ruth at Stone Joseph solicitors (0207 8549098), a specialist boutique employment practice to advise on what are the most relevant issues for you.