Unlike contractual claims, which can be waived by entering into a contractual waiver of such claims, statutory claims can only be waived in prescribed ways, one of which is by means of a compromise agreem.
For a compromise agreement to be legally binding, there are a number of conditions that must be met:. Other than the legal requirements listed above, the contents of a compromise agreement are largely at the discretion of the business and the employee involved. Examples of common clauses include:. Protecting confidential information is usually crucial to a business and therefore compromise agreements often contain confidentiality provisions, for example, the employee agrees:.
A large number of statutory claims can be settled by a compromise agreement, for example claims for:. There are a number of statutory claims that cannot be settled by entering into a compromise agreement, including some types of:. Call us on: 60 95 Get in touch In need of legal advice? Nature of enquiry Personal Legal Services Business legal services. X Close. In what circumstances will a compromise agreement be appropriate?
These claims may arise: on recruitment; during employment; or when their employment has been terminated. Unlike contractual claims, which can be waived by entering into a contractual waiver of such claims, statutory claims can only be waived in prescribed ways, one of which is by means of a compromise agreem What are the legal requirements for a valid compromise agreement?
For a compromise agreement to be legally binding, there are a number of conditions that must be met: The agreement must be in writing. So, what is a compromise agreement and what is the benefit to you and your employer in using them? A compromise agreement is a legally binding agreement either during or following the termination of your employment, and which brings your employment to an end. It is recognised by statute and is the only way you can validly "contract out" of your employment law rights.
It usually provides for a severance payment, in return for which you agree not to pursue any claim or grievance you may have in an employment tribunal. You must take independent legal advice from a lawyer on the agreement for it be valid and your employer will normally pay for the cost of this. Employers have for many years now increasingly used compromise agreements as a mechanism for preventing possible future complaints to a tribunal.
The CIPD survey found that major reasons for using the compromise agreement other than to settle an existing claim are to remove an employee on the grounds of poor performance or misconduct It follows that even where an employer has followed a fair process, many will still prefer the employee to sign a compromise agreement to ensure there is no possible comeback.
Very few processes are absolutely watertight and many individuals who are unaware of their employment law rights at the relevant time may have second thoughts after they have left.
Where the amounts offered are satisfactory, or where you instruct the solicitor to proceed despite the fact you could obtain more in a Tribunal or Court, your solicitor will sign off the Settlement Agreement to ensure a speedy settlement of the sums offered. If your solicitor advises that the money offered is insufficient and you instruct them to obtain as much money as possible, they will negotiate on your behalf to ensure a fair sum of money is paid.
This may mean the solicitor helping you to raise a grievance. It is important to lodge a formal written complaint to protect your position if there have been acts of discrimination. If a dismissal has taken place, your solicitor will assist with your appeal.
Where you have been in dispute with your employer, it is a good idea to ask that an agreed reference is attached to the Settlement Agreement with a clause that your employer cannot derogate from this agreed reference. The Settlement Agreement may reaffirm post-termination restrictive covenants in your contract. Your solicitor should check your employer has not increased their scope. When a Settlement Agreement is offered because there has been a serious breach of contract, a solicitor should advise whether your employer can still enforce the original restrictive covenants.
The value of the restrictive covenants to your employer will also help a solicitor assess the fairness of the amounts offered in your Settlement Agreement. The confidentiality clause is an extremely important part of the Settlement Agreement for your employer. However, sometimes the scope needs to be reduced to allow you to speak to those closest to you, such as a spouse or immediate family or to be able to tell future employers about the circumstances of your departure.
There may also be clauses preventing you from making derogatory comments against your employer. These can be changed to be mutual clauses, stopping your employer from denigrating you.
This is likely to cover all your legal fees in a straightforward matter. In a situation where you are being offered insufficient compensation sums, Martin Searle Solicitors offers the following funding alternatives:. Once all parties have signed a Settlement Agreement , compensation is usually paid within days. However, certain payments will be made through the payroll on the usual payroll date such as outstanding salary and accrued holiday and bonuses or commission payments.
We are an experienced Employment Team where all solicitors are specialists in Employment Law. We will advise you fully on all the implications of signing the Settlement Agreement and will endeavour to ensure you obtain a sum that represents the strength of your potential claims together with a reference.
0コメント