Compromise Agreements

Very often an employer will ask an employee to sign a compromise agreement and, in return, pay them a sum of money, typically representing compensation for loss of employment. By signing the agreement, the employee is agreeing not to take any legal action against the employer. In order for a compromise agreement to be legally binding, the employee must take independent legal advice from a relevant adviser. A relevant adviser includes a solicitor with a current practising certificate. It is customary for the employer to make a contribution towards the employee’s legal costs. This is typically £250 plus VAT. Unless there are negotiations to increase the sum the employer is paying the employee, £250 plus VAT should be an adequate sum for the solicitor to provide the necessary advice and sign off the agreement.

We are a firm of solicitors and every solicitor that we employ is a Relevant Adviser within the meaning of the Employment Rights Act 1996. We will assess whether there is any potential claim against your employer and see whether your employer is offering to pay you a reasonable sum of compensation. We can have a face to face or telephone consultation if you do not live within the local area. You will not be charged unless you have specifically agreed to be charged. If the sum being provided by the Employer is reasonable and you wish to accept the amount being offered by your employer, then following any minor amendments, the agreement will be signed by both parties and the matter is then at a conclusion. In these circumstances, there is no charge you. Our costs are recovered from your employer.

If, on the other hand, you wish to negotiate with your employer for an additional sum of money, then we will give you a cost estimate in order for us to negotiate on your behalf which would normally include setting out your case.