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Compromise Agreements Explained
TELEPHONE: 0845 603 7609 - EMAIL: enquiries@compromise-agreements.uk.com
Helping you through the maze….
22/03/2011
Successful Unfair Dismissal Claim
Successful Unfair Dismissal Claim
08/03/2011
Right to request time off for training will not be extended in April
Right to request time off for training will not be extended in April
17/02/2011
Fixed Retirement Age Scrapped from April
The default retirement age (DRA) will be phased out from April 2011 and unjustified fixed retirement ages will be unlawful.
01/02/2011
Consultation on reform to the Employment Tribunal system published
Consultation on reform to the Employment Tribunal system published
What is a Compromise Agreement?
If your employer is considering terminating your employment, either through redundancy or some other reason, you may be given a Compromise Agreement to sign.
In essence a Compromise Agreement represents a clean break between you as an employee and your employer. In return for receiving an enhanced severance package and agreeing other terms the employee agrees to give up his or her employment related legal rights. This will include foregoing the right to bring claims against the employer for such matters as unfair dismissal, harassment, discrimination and breach of contract. Indeed the only claims that would normally remain are those arising from any personal injury whilst at work or for accrued pension rights.
Why do I need legal advice?
It is a legal requirement that an employee receives advice from a legal adviser before signing a Compromise Agreement. The adviser must also sign the document to confirm that advice has been given. You will, in any event, need to be satisfied that you are receiving all you are entitled to before you agree to give up your legal rights, and consider the other options available to you in the event you reject the Compromise Agreement (which you are free to do).
What advice can I expect to receive?
Our aim is to give straightforward advice to enable you to make an informed decision on the merits of accepting the Compromise Agreement and the severance package contained within it.
In particular we will take you through the Agreement and explain each clause to you. In so doing we will ensure that it satisfies the necessary legal requirements including whether payments can be paid free of tax or, alternatively, should be paid free of tax.
We will also explain what other options are available to you and the merits or otherwise thereof.
It is possible to negotiate a better severance package?
Each case is of course different but we will advise you on the merits of seeking an increased severance package. We will also undertake those negotiations on your behalf should you so wish.
What will the advice cost me?
It is standard practice for employers to make a contribution to the legal fees incurred in taking legal advice. For advising you in full on the terms of your Compromise Agreement we will not seek a contribution from you above what the employer is prepared to pay.
If you wish us to negotiate at length on your behalf, we will first ask the employer to increase its contribution. If they refuse, then we will advise you in advance and seek your authority in the unlikely event that the contribution to costs is to be exceeded.
Do I need to see you in person?
No, you do not need to see us in person and accordingly we can advise you wherever you are in the UK. We will of course need to see the Compromise Agreement and your employer will usually send this to us by email. We will also need to verify your identity to comply with Money Laundering regulations.
How soon will I receive my money?
This will be specified in the Compromise Agreement but is usually within 14 days of the signed agreement being received by the employer.
How long will the process take?
Once we have the paperwork we will telephone you to provide the advice. If you are happy to accept the severance package offered and the Compromise Agreement is satisfactory then it is simply a question of signing the documentation and returning it to your employer.
Clearly, if we need to negotiate on your behalf, or amend the Agreement (for example to include a reference) then it will take longer. However in our experience provided the employer knows matters are being dealt with they will extend any deadline.
Can you help if I wish to bring a claim?
Our solicitors’ deal with cases in Employment Tribunals across the UK each week for all employment claims, including unfair dismissal, discrimination and harassment. We do offer no-win/no-fee agreements or fixed fees in appropriate cases.
What should I do next?
Please telephone us on 0845 603 7609 or submit your details here. On receipt one of our solicitors will telephone you at a time convenient to you (including evenings and weekends).
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