Legalities.

Of course its not that simple. Presenting an employee with a Compromise Agreement may in itself constitute a Constructive Dismissal so derisory settlement offers contained in Compromise Agreements may well do an employer more harm than good if the employee rejects the offer and proceeds to an Employment Tribunal. The parties must agree on the terms of settlement which may involve some negotiation on both sides. To be valid there are certain specific legalities relating to the format of the agreement.

Accordingly most employers will have the agreement drawn up by an employment lawyer. The agreement must be in writing, and must specify the particular complaint which the employee is agreeing to compromise. The employee must have received independent advice from a person qualified and insured to give that advice (invariably their own appointed solicitor) as to the terms and effect of the proposed agreement. The agreement must identify who the adviser is and it is usual for the employer to pay some or all of the costs involved in taking this advice. Finally the agreement must state that the conditions regulating compromise agreements are satisfied.

Conclusion.

Legalities aside, Compromise Agreements are an effective way of resolving a variety of employment disputes and provide an effective and viable method of avoiding legal proceedings and the consequential time costs and monetary expense for both parties and we are happy to arrange one for you through our network.