UK COMPROMISE AGREEMENTS

“Compromise agreements” are agreements made between an employer and an employee as to the terms upon which the employment is terminated and will usually take account of the previous contractual terms, statutory obligations, the conduct on either side, and the relative bargaining positions of each party. There are practical and commercial benefits in that there is avoidance of damaging publicity, reduction of legal costs for an action in court or in the Employment Tribunal, and the time and effort wasted in litigating an employment claim.

These arrangements were introduced in 1993 intending to legally bind both parties in full and final settlement of an employment dispute when it became apparent that ACAS was reluctant to become involved in the settlement of any claim where there had been no application to an Employment Tribunal. Certain conditions must be met in order that such arrangements are valid:-

• The terms must be in writing and relate to the complaint in question.
• The claimant must receive independent advice from one of the following:
  • A qualified solicitor or barrister
  • An appropriately qualified and authorised trade union representative
  • An advice centre worker who is appropriately certified and authorised
  • A fellow of the Institute of Legal Executives supervised and employed by a solicitor

We are able to offer a wide range of employment law advice including :-

• unfair dismissal
• constructive dismissal
• redundancy
• racial discrimination
• sex discrimination
• racial harassment
• sexual harassment
• disability discrimination
• workplace bullying law
• compromise agreements
• age discrimination
• victimisation
• equal opportunities
• discrimination through pregnancy
• transfer of undertakings
• working time regulations
• commercial agents
• religious discrimination
• discrimination on the grounds of sexual orientation

If you would like advice on compromise agreements just telephone us for free initial advice.