Compromise Agreements – Three Key Provisions

If you have been presented with a Compromise Agreement it is highly advisable that you are fully up to speed with its provisions.  Although Compromise Agreements primarily deal with compensation, there are provisions which could potentially affect you after you have left your job.  Here are three of the key provisions:

Post-termination Covenants

It is imperative to check that any restrictive covenants in your contract cannot be reaffirmed post-termination, such as when a Employment Compromise Agreement is offered by your employer following termination due to a serious breach of contract.

Your Solicitor should check that your employer has not increased their scope in this respect and they will be able to advise you whether or not your employer can still enforce the original restrictive covenants. Knowing the value of the restrictive covenants to your employer will also assist your Solicitor in assessing the fairness of the amounts offered in your Compromise Agreement.


The confidentiality clause is an extremely important provision within the Compromise Agreement for your employer; however it is possible for mutual clauses to be created which protect both parties.  For example, one that prevents you from making derogatory comments about your employer can be changed to ensure that they also adhere to these terms in reverse.  Some situations such as when it is necessary to explain the circumstances leading to your departure from a previous role require that the scope of the confidentiality clause be reduced.


You can ask your employer to add a clause to the Compromise Agreement determining an agreed reference which they cannot also then derogate from.  If you are in the situation of being or having been in dispute with your employer, it is advisable to request that an agreed reference is included in the Compromise Agreement.

Compromise Agreements Legal Advice? Contact us today

When your employer produces a Compromise Agreement you sign, it is very important that you speak to a specialist employment lawyer as soon as possible. Not only is taking independent legal advice a requirement of a valid compromise agreement, but an experienced compromise agreements solicitor will be able to advise you on much more they may be to negotiate a better overall compensation package for you and they can discuss with you whether or not you are happy with the kind of provisions described on this page and if you’re not, they can, they can seek to negotiate the terms of the agreement with your employer.

Our employment team regularly deal with compromise agreements throughout England and Wales. So contact us today for expert advice on securing the maximum amount of compensation due to you.

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