A Compromise Agreement is a legally binding written agreement which sets out the settlement terms agreed between an employer and employee. A Compromise Agreement is usually given to an employee as a result of the termination of their employment and this includes redundancy situations.�
A binding Compromise Agreement virtually prevents an employee from issuing a civil claim against their employer at any stage in the future.
Any employees who have been employed for a year or more should certainly be given a Compromise Agreement by their employer. We always advise our employer clients to, at the very least, consider giving a Compromise Agreement to any employee whose employment is coming to an end, as sometimes an employee will have the potential to raise a claim even if they have not been in employment for a year.
We are specialists in this area and provide a comprehensive and very efficient service, so if you are considering terminating an employee's employment please contact us immediately on a no obligation basis.
