|
 If so,
then ALLIED EMPLOYMENT SOLUTIONS can
help reduce your expenses by advising you on the
non-legal aspects of negotiating 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?
A Compromise Agreement is a legally recognised and safe
way of terminating the employment of an employee through
a finalised settlement, which minimises the dangers of
future complications or problems arising after the end
of their employment.
If you reach an agreement with an employee about the
termination of their employment, it is important to have
the details in writing and for the agreement to have
legal effect.
Is a Compromise Agreement the right solution?
As an employer, should you not comply with the law in
terminating the employment of one of your
employees, they could complain to the Employment
Tribunal which may result in an award of compensation.
As such, the only way you can be sure that an employee does
not take a complaint to the Employment Tribunal after
the termination of their employment, is for them to sign
away the right to do so. This is done in a Compromise
Agreement and has the effect of turning the agreement
between you and the employee into a "full and final"
settlement of any claims that they may have had in
respect of their employment.
What happens when you offer an employee a Compromise
Agreement?
Firstly, it should be borne in mind that once you
propose a Compromise Agreement, it can be safely assumed
that you have in effect dismissed the employee. There
is no legal obligation on the employee to sign
a Compromise Agreement, so should they not sign, they would
remain free to pursue any employment-related claim that
may be appropriate. It is
therefore highly recommended that you seek the
proper guidance and advice on the merits of any proposed
settlement figures and conditions that may form part of
any Compromise Agreement.
At ALLIED
EMPLOYMENT SOLUTIONS we
are able to offer employers assistance with all the
'non-legal' aspects of negotiating a Compromise
Agreement proposal with an employee, so
that you would only have to
pay your legal provider for the 'legal' services.
If
you would like to learn more on how ALLIED EMPLOYMENT SOLUTIONS can
assist you in managing a '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. |
