Bromley Solicitors

BROMLEY SOLICITORS – COMPROMISE AGREEMENTS

Compromise Agreement FAQs

Why have I been given a compromise agreement ?

Compromise agreements are usually offered where an employee’s employment has been terminated as a result of redundancy, unresolved grievances in the workplace, medical unfitness and other reasons.  A compromise agreement essentially settles actionable legal claims outside of court.  By accepting a sum of money (usually above statutory rates for redundancy) and certain other benefits (pension etc.), the employee agrees to forfeit his right to pursue legal claims against the employer at an employment tribunal or through the courts.

Do I have to sign the agreement ?

No, nor can you be forced to sign the agreement.  The agreement will be only legally binding if you seek “independent” legal advice.

I sustained a personal injury whilst working.  Will signing a compromise agreement prevent me from bringing a claim ?

By law, employers are not allowed to prevent employees who have sustained a personal injury or long-term disease whose symptoms take some time to show (asbestosis, for example) sustained whilst at the workplace/as a result of work from making a legal claim.

Can I ask my employer for a compromise agreement ?

Generally speaking, no.  It is not common for employees to request a compromise agreement.  However, it is possible, although you should remember that if you ask for a compromise agreement, you will essentially be asking to sever the employment relationship altogether, precluding the employer from changing his mind if he has decided to dismiss you.

I need advice on a compromise agreement.  Who can I see ?

You must see an independent legal advisor by law to make a compromise agreement valid, which can of course include solicitors, registered trade union officials and advice centre workers.

Will I get anything for my legal costs ?

Employers will generally contribute around £300 to £600 towards your legal costs.

Can I negotiate the package I get under a compromise agreement ?

Compromise agreements are usually negotiable regardless of the underlying issue which resulted in the agreement being offered in the first place.  If you seek advice from an experienced compromise agreement solicitor, you should be able to get a good idea of what is the lower and higher limits for circumstances such as yours, giving you scope to negotiate.

Why have been asked to sign a confidentiality agreement along with the compromise agreement ?

Compromise agreements are designed to settle disputes outside of court, away from the public eye.  Employment law issues can attract unwanted publicity.  Signing a confidentiality agreement effectively keeps the agreement secret for the employer’s benefit.  Confidentiality agreements generally come in two forms: one where you are not allowed to even discuss the existence of the agreement (with family members may be allowed, however) and one where you are allowed to disclose the very existence of the compromise agreement, but not the contents.

For furtyher assistance with a compromise agreement in Bromley, please click this link.