What is a Compromise Agreement ?

If you want to know what is a compromise ageement, you are one of the intelligent employees who want to stand up for their rights. A compromise agreement is a written agreement with your employer which brings about the end of the employment relationship on certain terms. Normally you re paid an amount of money in exchange for leaving as a clean break, that is, agreeing not to sue the employer. Without signing a compromise agreement, you are still legally entitled to claim against your employer, so most employers will insist on a compromise agreement before giving you a lump sum payment.

Sometimes compromise agreements are called redundancy contracts or dismissal contracts. The chances are that you are either at risk of being made redundant or you are close to leaving your job due to a tricky and potentially stressful situation. To find out roughly how much money you should get, fill in the online Compromise Calculator form.

Once you have agreed terms and a compromise agreement draft has been prepared, you will need to have it signed off by an independent solicitor. Your employer will always pay for this service, as it is necessary by law for the compromise agreement to be legally binding. We can recommend independent experts all over the UK for this signing service, so get in touch to find out more.

There may be other terms incorporated in the compromise agreement, such as the wording for a reference, or post termination restrictions (clauses which stop you from taking clients or fellow employees with you to a new job). All too often however, negotiations are one sided, with the employer dictating the terms and setting harsh deadlines for acceptance. What a lot of people don t realise is that the deal if often up for negotiation.To learn the negotiation basics, check out negotiating compromise agreements.

If you are savvy about instructing lawyers to represent you, either openly or behind the scenes, you can walk away with a lot more than you originally bargained for, and it can be a lot more relaxing knowing that you have professionals on your side. Have a browse through the Employee Experiences page to see how we helped others along the way. Employers will tend to pay more to those who have professional representation on their side.

In compromise agreements, both sides benefit from a government tax break whereby the first 30,000 of the settlement is normally tax free. Your employer benefits from a guarantee that you will not sue them for anything and you will be a good leaver. So both sides have a common goal which makes the process a lot more pleasant than full-on legal battles.

If you want to know how to get the best compromise agreement deal, or if you have any other compromise agreement query, including how to get representation at no up front cost, email us on info@compromiseagree.com, call us 0800 533 5134 or send a message in the box to the bottom right.

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