Why should I sign a compromise agreement?
The major reason is that the employer is offering you a financial package to compromise potential employment claims.
The decision whether or not to settle by way of a compromise agreement can be a complex one, as illustrated by the check list below.
The Check List
- to decide whether to settle and sign the compromise agreement:-
The first question is to understand if the financial settlement is at an appropriate level and this can only be done by comparing it to the value of any potential claim at the employment tribunal. This requires specialised legal advice but you may wish to consider the following:-
- What are the chances of success at the employment tribunal?
- What evidence do I have of my employer's wrong doing?
- You have to consider the advantages of taking an early settlement; you will save on the time and expense of pursuing your rights in an employment tribunal. There is also the emotional strain of litigation to consider.
- What are the legal costs?
- If you have a job offer that you wish to accept, then you may be on "double pay" for several months upon signing the compromise agreement.
- Will fighting adversely influence my career?
- The first £30,000 of the non contractual component is tax free.
- You have to make sure that the compromise agreement reflects the true agreement reached and your requirements, such as providing an agreed reference.
- Could the acceptance of the compromise agreement mean that you lose other rights that are not expressed in the compromise agreement, such as share benefits and pension rights?
- You should be in a well informed position to assess the pros and cons of the compromise agreement.
- Has the employer more to lose and what is the likelihood that the employer will settle quickly and at what level?
- You should discuss the matter with an independent legal adviser at the earliest opportunity.
So, contact either Andre or Ruth at Stone Joseph solicitors (0207 8549098), a specialist boutique employment law practice, to advise on what are the most relevant issues for you.