Compromise Agreements FAQ

Compromise Agreements FAQ

What is a Compromise Agreement?

A Compromise Agreement is a settlement agreement in which an employee agrees to compromise his or her legal claims against the employer on agreed financial and other terms. It is basically a document that records an employee’s agreement not to pursue a claim such as unfair dismissal, redundancy, or contracts of Employment related breaches. Negotiating a Compromise Agreement can be a complicated process and Knight-Webb Solicitors have many years of experience in this field.

Knight-Webb Solicitors are employment law specialists and have successfully advised on a large number of both Compromise Agreements for both employers and employees. We are based in Dulwich in South East London but are able to provide appointments in central London at the convenience of clients.

What Does Without Prejudice Mean?

Compromise Agreements are sometimes offered during a ‘without prejudice’ discussion between the employer and employee. This may be for the following reasons:

  • The employer may be proposing dismissal, for redundancy or some other reason.
  • An employment tribunal claim may have been brought forward against the employer.
  • An internal grievance may have been filed against the employer.

Both sides can agree in a Compromise Agreement that the employer will provide a reference in an agreed form to potential employers.

What are the Terms of Negotiating a Compromise Agreement?

In addition to clauses about payment terms and references, compromise agreements usually contain terms preventing one or both parties from making disparaging statements about the other. Compromise agreements also often require the employee to keep the compromise agreement confidential. Often, employers will ask that the employee provide an indemnity against any tax payable on the compensation sum.

Do you Provide Employment Law Advice for both Employees and Employers?

Yes, we have experience of providing advice for both. If you are an employee and are worried about an employment-associated issue which may result in you needing Employee Compromise Agreement advice, or there is a threat of unemployment then please do not hesitate in contacting us today. We have many years experience in dealing with employee related concerns.

Like-wise, if you own or run a business and would like some Employer Compromise Agreement related advice, or have any other issue with one of your employees, then we can help you. We have many clients who are employers and have many years of experience. Please contact us today.

I Live Outside of London, Can I Still Speak to You?

Even though we are based in London, we have many clients further afield, if you are based outside of London please contact us today and we can arrange a telephone conference.