How A UK Compromise Agreement Works

During the many years of working life, most people will enjoy a fulfilling and productive relationship with their employers. However, on occasion, a working relationship reaches its natural conclusion, and an employer/employee relationship has to be ended. In order to conclude employment swiftly and satisfactorily, a compromise agreement is often the best solution for both parties. Our expert team of UK Compromise Agreement Solicitors will seek the best possible settlement for our clients under an agreement, making the end of employment as smooth as can be expected.

What is a Compromise Agreement?

In the UK a compromise agreement is a contract drawn up between an employer and employee as a settlement for an employee upon losing their job. The agreement also states that an employee will not pursue a claim for compensation against their employer. The agreement will set a termination payment for an employee, which can be up to £30,000 tax free, as well as a formal list of clauses that are intended to make the settlement as final as possible.

Why do I need a Compromise Agreement?

Compromise agreements are legally binding contracts in the UK; therefore, they will include much law specific text and description, including areas of certain laws and Acts which can be difficult to understand. In order to obtain a fair and satisfying settlement, on the understanding that an Employment Tribunal claim cannot be pursued after signing a compromise agreement, it is advisable to seek such an arrangement with specialist legal advice.

Employment law rights cannot, in general, be given up or ‘contracted out’ by an employee, so a compromise agreement is a useful and comprehensive solution. Tribunal cases can be a very expensive, highly stressful and time-consuming process, for both an employer and employee. A compromise agreement may therefore be the best and quickest method of amicably ending an employment relationship. Our Compromise Agreement Solicitors are highly experienced in reviewing terms of any compromise agreement, and will work with you in order to achieve the settlement you deserve.

Do I need legal advice on a UK Compromise Agreement?

Yes. By law, you must seek legal advice, separate from that of your employer. Our Employment Compromise Agreement team are happy to review compromise agreement contracts, as well as explain the terms of what you would be signing. Such contracts are often phrased in highly complex legal language, so it is essential you fully understand what you are signing. Without legal advice, your compromise agreement is simply not valid; therefore your employer is not obliged to abide by the contract, including the payment of any compensation.

With legal advice, you can also renegotiate your compromise agreement if you are unhappy with the terms offered by your employer. Our Compromise Agreement Solicitors will also advise you on whether you have a case that would be beneficial to take to a tribunal, for example, for discrimination, and whether you would be better off to sign the agreement or not.

Contact our Compromise Agreement Solicitors

For swift and expert advice from Devon to Berkshire, call our specialist UK Compromise Agreement Solicitors today for a FREE first telephone consultation on

  • 0800 1404544 or
  • use the contact form below