Compromise Agreements

Most employers will insist on an agreed redundancy package when you are being let go from your work. This comes in the form of a Severence Agreement, often known as a 'Compromise Agreement', which you will be required to enter into. Indeed, it may often be very beneficial to you to reach an agreement, so that you can move on swiftly and cleanly. The Compromise Agreement itself will set out the terms of your leaving that both parties have agreed upon and must be signed off by a Solicitor or Legal Executive.

IMPORTANTLY FOR YOU, THERE IS OFTEN NO CHARGE FOR OUR WORK WITH COMPROMISE AGREEMENTS AS YOUR EMPLOYER SHOULD BE OFFERING TO PAY!

ON TOP OF THAT WE ARE USUALLY ABLE TO TURN YOUR MATTER AROUND IN ONLY ONE WEEK.

The Agreement

Normally a Compromise Agreement will include such things as:

• payment for your leaving (including a gratuity)
• date of departure
• what to do with company property
• the waiver on your part of any future claim against your employer
• miscellaneous clauses

all of which need to be considered with regard your position within the company, the reason for your leaving, and any possible claim you might have against your employer for unfair dismissal, and what payments might result from that.

As mentioned, ordinarily your employer will contribute to the legal costs necessary for a Lawyer to sign the Agreement. If they do not then we will inform you.

A lot of Compromise Agreements can be signed off on the day you come into the office, while others are worth spending the time and effort negotiating with your employer for a better deal. Hewetts have particular expertise in this field and we will be able to let you know whether the Agreement reached is reasonable, or worth negotiating over. We are happy to assist you in the process of reaching the best financial settlement with your employer.

Negotiations

If necessary we are happy to undertake negotiations on your behalf. We may be able to reach a better agreement with your employers than you have, should you wish us to do so. This might include:

• Increased severance payment.
• Payment in a more tax efficient manner.
• Release of restrictive covenants affecting where you work.
• A better reference than your employer might initially be prepared to give.

We have considerable experience in negotiating with employers and normally we are able to bring about a better settlement than you will have been offered. As we regularly offer advice to both employers and employees we will be aware of how and why your employers will be negotiating, allowing us to see the larger picture and secure the best agreement for you with the lowest possible outlay.

If you would like to arrange an interview then please contact Oliver Kew on 0118 9559613

Frequently Asked Questions

1.  Do I have to come and see you?

As with any legal matter we would prefer to see you if at all possible. It is amazing what comes out during interview that does not necessarily come out over a telephone conversation. Nevertheless, if it is inconvenient for you to visit us we are able to provide service without seeing you.

2.  Why do I have to see a solicitor at all?

The law states that Compromise Agreements can only be put in force once signed off by a Solicitor or Legal Executive. This is because part of the Agreement will involve you waiving certain legal rights to bring a court action against your employers. You must therefore be informed what you are giving up, and whether it is worth you giving it up. In other words, is the amount of money being offered you by your employer enough for you to reasonably consider waiving your rights to bring an action against them? Only a Solicitor or Legal Executive can tell you.

3.  What about my ability to work elsewhere after I leave? Maybe for a competitor?

A Compromise Agreement will deal with these issues, and often times they are issues that are worthy of being negotiated. Although certain restrictions may appear in your employment contract, under a variety of circumstances these can no longer have effect once you leave your employment. Therefore if the employer wishes to re-insert them into your Compromise Agreement, they are worth receiving a larger gratuity for.