West London Solicitors

WEST LONDON COMPROMISE AGREEMENT SOLICITOR FAQS

What is a compromise agreement?

A compromise agreement is sometimes offered to employees who employment is terminated.  They are commonly used where an employee is made redundant, does not wish to return to work following maternity leave, cannot return to work due to ill-health or leaves due to some unresolved grievance.  In return for a payment of a certain some of money and benefits, the recipient of a compromise agreement waives his right to take any legal claims he has against his employer to an employment tribunal or court.

Do I need to seek legal advice if I am given a compromise agreement?

Yes, it is absolutely essential as the agreement will not be legally valid unless you receive independent legal advice, which can include advice from trade union representatives or solicitors not associated with the company is any way.  Many compromise agreements will include provisions for your legal costs as well.

Are payment under compromise agreements tax free?

Yes they are for sums less than £30,000.

My employment has been terminated and my employer is demanded I stay at home during the notice period.  Do I have to comply with this demand?

If your employment contract includes a “gardening leave” clause, then you will have to comply with your employer’s demand.  You will still be entitled to receive pay.

If, however, there is no such clause, then you do not technically have to comply with his demand.

Are compromise agreements negotiable?

Yes they are negotiable.  However, you should take into account the fact that compromise agreement are allowed for statutory law and are therefore quite standardised in the way in which they are worded.  It is not, however, unusual to try and negotiate the sum of money you receive under the agreement, particularly if the amount is less than what you would in all likelihood receive in the particular circumstances.

The compromise agreement has a deadline.  Why is this?

Employer use this as a tactic to ensure the agreement is rapidly concluded.  If you have sought legal advice and are happy with the content of the agreement, you should adhere to this deadline.  If, however, you are in negotiations with your employer, in all likelihood they will still accept the agreement even where the deadline has passed.

Do compromise agreements rule out every type of legal claim after they have been concluded?

Whilst claims relating to employment law will in all likelihood be ruled out, in theory you will still be able to bring claims relating to personal injury, accrued pension rights and breach of contract   Generally, you can bring claims for personal injury so long as the claim was not existing at the time the agreement was concluded.  Claims for breach of contract will be allowed if they relate to your employer breaching the compromise agreement itself.

Why not visit the main compromise agreements in West London page ?