If your employer wants to terminate your employment it will often ask you to sign a Compromise Agreement.

Basically under a Compromise Agreement:

  • your employer agrees to make you a payment and
  • you agree not to make any employment claims against your employer.

This often happens in practice where the employer wants to terminate an employee’s employment quickly without following correct procedures, for instance if it does not want to follow all of the proper disciplinary procedures or if it has not carried out a detailed consultation exercise in the case of redundancy.

A Compromise Agreement will not be enforceable unless an employee has taken independent advice from a solicitor (who has to sign a statement confirming that they have advised the employee).  This is because the employee will usually be signing away their employment rights in return for the payment from their employer.

The employer will often pay your solicitor’s costs in giving you this advice and, wherever possible we will try to contain our charges to that amount. 

Parker Arrenberg can help you if your employer presents you with a Compromise Agreement to sign.

We will go through all the relevant facts with you and advise you on what your legal position would be if you signed or did not sign.

If we identify issues that you want to pursue we can negotiate with your employer to try to improve the package on offer or change some of the terms – for instance to make sure the employer gives you a reference.