Your employer may offer you a Compromise Agreement. A compromise agreement is a legally binding agreement between an employee and an employer.
If you have been offered a compromise agreement it is most likely that you are leaving the Company, a dispute exists between you and your employer, or where you believe that you may have an employment tribunal claim.
A compromise agreement will not be legally binding unless you have taken advice from a relevant independent adviser as to the terms and effect of the agreement. An independent adviser is usually an employment law solicitor. If your employer asks you to sign any settlement document upon the promise of a payment without consulting an independent adviser, it is not legally binding.
Most employers will make a contribution towards your legal fees of approximately £250 + VAT. In some cases, if the dispute is complicated the employer will make a higher contribution. If your legal costs can exceed the employer’s contribution you will be responsible for the balance. We always provide you with an estimate of the likely costs involved, before we carry out any work.
The first step is to ask your employer for a copy of the Compromise Agreement and send it to us. We do not charge for your initial enquiry.
Read more in our Compromise Agreement Fact Sheet
