Compromise Agreements
If you have or are likely to be made redundant or if you are dismissed for other reasons it is likely your employer will want you to enter into a Severance arrangement commonly known as a Compromise Agreement. The Agreement will set out the terms agreed between the parties including such matters as:
- Remaining salary due to be paid to the employee.
- Holiday entitlement that is left.
- A gratuity payment
- Whether the gratuity is to be tax free.
- Whether there are to be any ongoing restrictive covenants in relation to where the employee is to work in the future.
The claims you will be giving up if the employee signs the Agreement
A Compromise Agreement has to be signed off usually by a Solicitor or Legal Executive to comply with current legislation. The role of the Solicitor is to advise the employee on the terms of the Agreement and to make amendments where appropriate.
It is imperative you understand the document you have been asked to sign and that you obtain proper independent legal advice.
The legal costs of so doing are usually paid for by the employer and thus it is usually free to the employee.
We can help you by giving expert advice.
We have considerable experience in advising on the Compromise Agreements.