A UK compromise agreement is used for a range of reasons, and it can be highly effective in helping to sort out employment related issues and provide a conclusive resolution to an issue between an employer and an employee. An employment compromise agreement are potentially able to save both the employer and the employee time, money, and inconvenience, making them an effective tool for bringing a range of issues to a close.
There are a number of issues and matters that can be dealt with through the use of a compromise agreement. Some of the issues that may be dealt with through one of these UK compromise agreements include redundancy payments, compensation for unfair dismissal claims, severance packages for dismissal, bonuses, unpaid wages, pay in lieu of notice, and holiday pay entitlement. There are also other employment related issues that may be dealt with and resolved using these agreements including those not related to termination of employment.
Employers these days often used employment compromise agreements because they want the matter settled once and for all rather than having it dragged out and having the potential threat of tribunal action hanging over their heads. With a compromise agreement a full and final settlement is offered, and if the employee accepts then he or she also has to accept they no further action can be taken with regards to the matter.
A compromise agreement can be beneficial for the employer in terms of helping them to resolve an issue with an employee once and for all, saving them time, worry, and potentially money in the future. However, they can also be beneficial for the employee in that he or she is able to get a settlement without the worry of having to take the matter further, get caught up in tribunal action, and fight what could end up being a losing battle in the courts.
It is important to remember that these agreements are legally binding and therefore once you have signed you have to adhere to the terms of the agreement. This is why it is important that you are fully aware of the terms and implications of signing, and why it is also important to get specialist legal advice before you sign. Getting this compromise agreement advice is actually a legal requirement in order for the agreement to be legally binding, and this is why your employers will often fund part or all of the cost of getting this advice.
Need specialist compromise agreement advice ? Contact us today
For legal advice you can trust, call our specialist Compromise Agreement Solicitors today for:
- a FREE first phone consultation on 0800 1404544 or
- use the contact form below: