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Compromise Agreements - A Guide for Employees
An employee who finds themselves embroiled in a disciplinary issue with their employer or perhaps whose employment has been terminated by their employer, may be offered a Compromise Agreement by their employer or former employer.
Compromise Agreements are agreements between an employer and an employee that settle the contractual and statutory claims that an employee may have against the employer following the termination of the employee's employment. A Compromise Agreement will usually involve the employee agreeing not to bring certain claims against the employer in return for a payment and possibly some other benefits.
A Compromise Agreement needs to comply with a number of statutory rules - so it is important that it is drafted correctly. One of the requirements is for the employee to receive legal advice from a relevant independent adviser on the terms and effect of the proposed agreement and its effect on the employee's ability to pursue any rights before an employment tribunal. The employee will usually obtain this advice from a solicitor and the employer will normally contribute to the costs of this advice.
This independent advice is an important step and should not be seen as a formality.
"Bradshaw Hollingsworth regularly act as the relevant independent adviser in Compromise Agreements, and are specialists in this area"
From the point of view of an employer, entering into a Compromise Agreement provides certainty that the employee will not bring claims against the employer. Whilst for an employee, it may be possible to achieve an improved settlement payment or for that payment to be paid in a more favourable way. This can include paying the settlement sum free from deductions of tax and National Insurance. This means the employee can often end up in a better financial position.
At Bradshaw Hollingsworth, we are advising both employers and employees on Compromise Agreements on a daily basis. Our clients include businesses and individuals throughout Leicester and Leicestershire, as well as nationwide. It is not essential that our clients are able to visit the office, with much of the advice and support being provided over the telephone. Much of our work comes from recommendations from former clients who we have assisted before on Compromise Agreements and are aware of the service that we provide.
If you are an employee who has been offered a Compromise Agreement and would like to discuss it with a specialist employment solicitor, please contact Robin Bradshaw of Bradshaw Hollingsworth by email at robin.bradshaw@bhlaw.co.uk or telephone 0116 204 2500.
Bradshaw Hollingsworth provide specialist legal advice in the areas of Employment Law, Litigation, Commercial, Insolvency, Debt Recovery, Wills & Probate and Property, including residential conveyancing, house sales, house purchases and re-mortgages. For more information about our services please contact Greg Hollingsworth of Bradshaw Hollingsworth Solicitors, 19 New Walk, Leicester on 0116 204 2500 or by email at greg.hollingsworth@bhlaw.co.uk.
Partners: Robin Bradshaw and Greg Hollingsworth - Bradshaw Hollingsworth is regulated by the Solicitors Regulation Authority.
