If you own a business, you will most probably know what a UK Compromise Agreement is. For those of you who have not come across one before, it is basically a form of legal settlement which comes under the umbrella of Employment Law – a valid compromise agreement means that an employee will usually sacrifice any claims for discrimination or other statutory claims.
Employment Compromise Agreements are however, only valid if certain conditions are met;
- the agreement must relate to specific legal claims and
- has to be in written form and
- legal advice on the compromise agreement must be given to the employee by an independent solicitor and
- the giving of such independent legal advice must be confirmed in the agreement itself
It has usually been the case that once the Compromise Agreement has been agreed and ended by the employee, there is no way the employee can legally make any claims against the employer. The Employment Appeal Tribunal showed that, in exceptional cases, this is not always the case for example if the employee is intentionally misled into accepting an agreement with conditions that the employer knew were false. This may make the current Compromise Agreement invalid and mean that the employee can make further claims outside the agreement. Before reaching a decision, the Employment Appeal Tribunal may have to check if any misrepresentation occurred.
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