A compromise agreement is a legally binding agreement made between an employer and an employee. An employee is usually asked to sign a compromise agreement following the termination of their employment through redundancy. The agreement will usually specify a sum of money which the employee will receive upon signing the agreement in return for which the employee agrees that they will not pursue any claim that they may have against their employer at an employment tribunal or the civil courts.
The binding nature of compromise agreements means that it is necessary for you, as an employee, to consult an independent solicitor to ensure that you understand what you are being asked to sign. The cost of independent legal advice is usually paid for by the employer so you will not have to pay for your legal advice. You should consult a solicitor who has experience of dealing with compromise agreements on a regular basis so that you can be given the correct legal advice.
Sarginsons Law have advised employees in the Coventry and Warwickshire area on various types of compromise agreements for many years. We can advise you on whether you are entitled to redundancy pay and we can calculate whether the redundancy payment specified by your employer in the compromise agreement is actually correct. If the employer has made a mistake in their calculation you may be entitled to more redundancy pay. If you are not happy with the compromise agreement that you receive we can negotiate possible changes with your employer on your behalf.
If you would like Sarginsons Law to advise you on your compromise agreement please contact us.