Has your employer offered you a 'Compromise Agreement'
as a means of terminating your employment?

At ALLIED EMPLOYMENT SOLUTIONS we can advise you on the consequences of signing a Compromise Agreement prior to it becoming a legally binding settlement.
 
To begin with you may find the following information helpful:

What is a Compromise Agreement?

If you reach an agreement with your employer about the termination of your employment, it is important to have the details in writing and for the agreement to have legal effect.

A Compromise Agreement is a legally recognised and safe way of terminating your employment and finalising a settlement. It minimises the danger of future complications or problems arising after the end of your employment.
 
Do you need a Compromise Agreement?

If your employer does not comply with the law in terminating your employment, you could complain to the Employment Tribunal which may result in an award of compensation.

As such, the only way an employer can be sure that you will not complain to the Employment Tribunal after the termination of your employment is for you to sign away your right to do so. This is done in a Compromise Agreement and has the effect of turning the agreement between you and your employer into a "full and final" settlement of any claims that you may have had in respect of your employment.
 
Should you sign the Compromise Agreement?
 
Firstly, it should be borne in mind that once your employer offers you a Compromise Agreement, it can be safely assumed that you have, in effect, been dismissed.
 
There is no legal obligation for you to sign a Compromise Agreement and while it is often preferable to resolve any potential dispute without bringing Employment Tribunal proceedings, should you not sign you will be free to pursue any employment related claim that may be appropriate.

Should you be considering entering into signing a legally binding Compromise Agreement, it is highly advisable that you seek guidance and advice on the merits of any proposed settlement figures and conditions and whether your best interests may be better served by a referral to the Employment Tribunal. 

If you would like to learn more on how ALLIED EMPLOYMENT SOLUTIONS can assist you in  managing your employers 'Compromise Agreement' proposal, why not complete our online enquiry form or give us a call on FREEPHONE 0800 567 7813 and one of our friendly advisors will contact you.