Compromise Agreements

An effective solution to employment termination

In this difficult economic climate we understand that many employers are considering letting some staff leave. If you have taken this decision, you must ensure that the agreement reached is concluded in such a way that there it is done once and for all. The safest way to protect yourself from any future litigation or an Employment Tribunal claim is to ensure that your employee's sign a Compromise Agreement.

What Is A Compromise Agreement

A Compromise Agreement sets out the full settlement terms agreed between yourself and the employee. The most important consideration for an employer is that, once signed, it removes the prospect of the employee taking any further action against you in relation to the termination of their employment.

The agreement also ensures your employee receives a fair settlement as it must be approved by a solicitor acting in the best interests of your employee. The Compromise Agreement also often allows for an additional ex-gratia payment for your employee that may not be taxable.

Legal advice and costs

It is essential that you receive legal advice before entering a Compromise Agreement. The validity of the agreement will be in doubt unless it meets certain legal requirements. However, if correctly drafted it removes the worry of costly litigation so is normally well worth the investment.

Normally the employer is expected to pay the costs of the drafting of the Compromise Agreement, but also your employee's legal fees (a few hundred pounds). We provide a competitively priced service for employers for our Compromise Agreement drafting service.

Let Us Help To Protect Your Business?

For a friendly discussion, please call us today so we can help you achieve the best possible outcome for you and your business.

Our employment solicitors have advised many companies and their employees and specialise in compromise agreements.

Please call us on 01634 811 118, complete our online enquiry form, or email info@kslaw.co.uk

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