Compromise Agreements

Introduction

At Quantrills we deal daily with routine and complex compromise agreements acting for employees throughout the UK. We act for all types and levels of employees, including senior managers, executives and directors. The value of individual compensation payments we advise on ranges from a few hundred pounds to over £500,000.

We often have to use our negotiating skills to secure increased compensation for clients and to ensure that the terms of any compromise agreement are fair and reasonable.

What is a compromise agreement?

A compromise agreement is a written contract between an employer and employee and once signed prevents the employee from starting or continuing with any employment tribunal or court claim arising from his or her employment and its termination.

The use by employers of compromise agreements is extremely common because it is just about the only lawful way the employer can prevent an ex-employee from bringing a claim after the employment has come to an end.

Comprehensive advice

If you are the employee it is essential that you obtain comprehensive advice about the terms and effect of the compromise agreement before signing. You will need to be sure that you are receiving the right amount of compensation and that the terms of the agreement are fair and reasonable. Important income tax issues will need to be checked to make sure you will not end up paying the wrong amount of tax; and the agreement will need to include specific clauses to deal with agreed terms including pension, references, fringe benefits, confidentiality and legal fees.

Our approach

Our approach is thorough, efficient and successful. We will not waste time on non-points, nor will we overlook what is important. We will ensure that you receive the best possible terms of settlement.

We will discuss with you how you feel about the terms of the compromise agreement and what issues you may have. We will review the background to your case and assess if the financial and other terms of the agreement are fair.

We will give you our expert advice on what if any options you have and we will agree with you how best to respond to your employer or their solicitors. At each stage we will act in accordance with your instructions and preferred outcome.

Even in routine cases there is invariably a need to seek improvements to the terms on offer or amendments to the draft compromise agreement. In more complex cases, for example, involving senior employees or directors, we are experienced in negotiating the details of the severance package, including dealing with disputed bonus or share option entitlements.

Any questions?

Please call us on 01473 688100 to discuss how we can help you with your compromise agreement. If you want to know more about compromise agreements before you call please see our Questions and Answers here