A compromise or settlement agreement is a contract that an employer offers to an employee which is intended to deal with conflicts or potential disputes following termination of employment. The employer usually offers to pay an amount of money if the employee agrees not to make additional claims related to any complications or disputes that may arise as a result of dismissal.
Prior to signing a compromise settlement agreement an employee must, by law, receive legal guidance. The agreement must be counter-signed by an authorised representative or an independent solicitor, who has advised the worker of their rights. The cost of this advice is usually paid by the employer.
A compromise settlement agreement is usually more generous than an employee might expect if relying only on statutory contractual payment for termination of employment however the agreement is often a far-reaching document in that once it is signed all clauses contained in the document must be adhered to by both parties. This type of agreement often details what the employer will tell co-workers about the termination, what the wording of future job references will include and what the employee may say about his/her treatment whilst working for the employer.
The amount being offered in a settlement compromise agreement must be examined in detail and weighed against the circumstances of dismissal and future prospects. Your solicitor may have to renegotiate the terms of such an agreement. In certain circumstances you may be cautioned to reject the offer and look at applying for a hearing with the Birmingham Employment Tribunal especially in the case of discrimination, victimisation or unfair dismissal.
A settlement compromise agreement may not only involve monetary compensation but other relevant factors may include:
Our employment law solicitors deal with compensation claims heard by the Birmingham Employment Tribunal by using the risk free no win no fee scheme. You do not have to pay anything upfront and in the unlikely event that you do not receive compensation, you will not be charged any legal costs. If you would like legal advice without further obligation from an experienced employment solicitor just call the helpline or complete the contact form or email our offices.