Compromise Agreements

If you have a dispute with an employee, need to make redundancies or if the time has simply come for an amicable parting of the ways then to avoid the risk of a tribunal claim being brought against you its important that your employee signs a Compromise Agreement.

The compromise agreement will set out the terms agreed between you and your employee – normally a cash payment from you – in return for which the employee agrees not to pursue a tribunal claim against you.

The compromise agreement has to be in a very specific format in order to comply with the applicable legislation. Get it wrong and it will not be a binding settlement and the employee will be able to keep the money and still bring a claim against you for more!

Contact Rees Page for advice about all aspects of bringing the employment relationship to an end and for information about how we can draft a compromise agreement that meets the specific requirements of your situation.