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Compromise Agreements-Fast

 FAQ's

Q: What is a Compromise Agreement?

Q: What is the effect of a Compromise Agreement?

Q: What is the effect of a Compromise Agreement?

Q: What is the benefit to me of a Compromise Agreement?

Q: Can I refuse to sign the Compromise Agreement?

Q: What if I do not agree with the terms of the Agreement?

Q: Why do I need to get legal advice?

Q: Who pays for the Compromise Agreement?

Q: Do I need to come to your office?

Q: What if I decide to issue an Employment Tribunal claim

What is a Compromise Agreement? TOP

If you have been made redundant or you are in the process of losing your job it is possible that your employer will ask you to sign a Compromise Agreement. A Compromise Agreement is an agreement between you and your employer to stop you bringing any claims against them in the Employment Tribunal in connection with the termination of your employment, in return for a payment by the employer. Essentially, a Compromise Agreement is a “clean break”. Any issues outstanding between you and your employer must be resolved when the Compromise Agreement is negotiated. So you will need good advice to make sure that you are getting a fair sum in settlement of your claims, and that the Compromise Agreement covers all the issues it should.

What is the effect of a Compromise Agreement? TOP

If you sign such an agreement you will give up any rights you have to claim for matters such as unfair dismissal, redundancy, disability discrimination or sex, race and age discrimination. The Agreement will also cover other key matters, such as: what reference you will get settlement of any claims your employer may have against you what will be told to other staff about your departure whether you will be held to any restrictions on your future employment, and whether certain matters must be kept confidential

What is the benefit to me of a Compromise Agreement? TOP

A Compromise Agreement will cover the key matters in connection with the termination of your employment. In particular it can allow you to specify what settlement monies you receive and what reference will be given to prospective employer, release you from any restrictions on your future employment, settle any claims your employer may have against you and ensure that certain matters are kept confidential.

Can I refuse to sign the Compromise Agreement? TOP

Yes. There is no obligation on an employee to sign a Compromise Agreement. Please speak to one of our employment lawyers today if you are considering bringing an Employment Tribunal claim.

What if I do not agree with the terms of the Agreement? TOP

In almost all cases we are able to re-write the agreement to remove the more unreasonable clauses that employers initially propose and we are often able to secure a higher settlement than was originally proposed. In addition, in many cases we are able to reduce the tax payable on the settlement package and deal appropriately with pension issues. Over the years we have acted for a very large number of employees, of all types and levels of seniority, in negotiating the terms of Compromise Agreements with their employers. Why do I need to get legal advice? TOP You need good advice to make sure that you are getting a fair sum in settlement of your claims, and that the Compromise Agreement covers all the issues it should. A Compromise Agreement is invalid if you have not received independent advice from a qualified adviser who is adequately insured – a ‘relevant independent adviser’. We are such specialist advisers and so the normal route is for us to advise you on the Compromise Agreement, and then sign a declaration for your employer to confirm that we have given you independent advice so that the agreement is legally binding.

Who pays for the Compromise Agreement? TOP

An employer will normally make a contribution towards the employee’s legal fees for seeking advice on the Compromise Agreement. In most cases the employer’s contribution will cover the employee’s legal fees. However, in some cases where lengthy negotiations are required the fees may exceed the employer’s contribution. We can confirm the costs position as soon as we have reviewed the text of the draft Compromise Agreement.

Do I need to come to your office? TOP

No, not at all. There does not need to be any delay or inconvenience to you. We advise clients requiring Compromise Agreements throughout the country and will be able to advise you on the compromise agreement promptly. There is no need for you to attend our offices as we can conduct our service by telephone and e-mail. However, if you would prefer a face-to-face meeting this can obviously be arranged. We will normally arrange for a specialist employment lawyer to contact you within 4 hours.

What if I decide to issue an Employment Tribunal claim? TOP

If you decide not to accept the Compromise Agreement, we can act for you in bringing an Employment Tribunal claim. Our reputation in employment law has been gained by successfully suing some of the largest employers in the UK, and gaining substantial compensation for our clients. If you have an employment claim, it will normally fall into the following categories: Unfair dismissal Redundancy Disability discrimination Sex and race discrimination Age discrimination Apart from our expertise in bringing claims, one of the reasons our employment practice has grown so fast is that, unlike almost every other law firm, we are prepared to ‘put our money where our mouth is’. If your case has sufficient prospects of success we offer a ‘no win, no fee’ service whereby you will not pay our professional fees even if you lose your claim.

Please do not delay in contacting us, though as there are strict time limits for bringing claims and only limited exceptions.

* We aim to arrange for a specialist employment lawyer to contact you within 4 hours when you contact us during our opening hours. If you contact us outside of our opening hours we will aim to arrange for an employment lawyer to call you back within 4 hours of our reopening