Compromise Agreement Solicitors

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We are Compromise Agreement Solicitors Manchester

What is a Compromise Agreement?

A compromise agreement is a legally binding  agreement between an employer and an employee, in which the employee accepts a sum of money (or other benefit) in exchange for agreeing to give up his or her rights to bring a legal claims against their employer, whether during or at the end of their employment.

To prevent employees from signing away their rights, without fully understanding the terms and effect of the compromise agreements, certain rules must be adhered to, failing which the compromise agreement will not be effective. One of the most important rules is that the employee obtains independent legal advice from a qualified lawyer or relevant legal advisor.

A compromise agreement is a commercial agreement between employer and employee and it is open to both parties to negotiate the terms of the compromise agreement. In addition to settling disputes arising out of  the employment  compromise agreements will often include terms regarding confidentiality, return of company property, references and restrictions on future employment or a requirement not to make disparaging remarks about the employer.  Our compromise agreement solicitor can advise you as to the appropriate terms to be included.

What’s the effect of a compromise agreement?

Once a compromise agreement is signed the employee will be prevented from pursuing any of the claims identified within the compromise agreement against the employer.  It is usual for the employer to make a contribution towards the cost of the employee seeking independent legal advice, although there is no legal obligation on the employer to do this.

Some compromise agreements are very straightforward.  The employer will offer the employee a sum of money to waive his or her rights and the employee will happily walk away from the employment.  Other agreements are more complex and may involve the resolution of outstanding issues.  No matter what you require, our compromise agreement solicitor has the experience to advise you and, if required to negotiate on your behalf, in order to achieve the best outcome.

Contact our compromise agreement solicitors in Manchester today and we’ll be pleased to discuss matters with you on no obligation basis.