Compromise Agreements
A Compromise Agreement is a legally binding document signed by the employer and the
employee which sets out terms of settlement following termination of an employee's
employment. It usually provides an employee with a payment in return for providing the
employer with peace of mind that he/she will comply with certain terms set out in the
Agreement and will not pursue any claims through the Employment Tribunal or the civil
courts arising from his/her employment.
For such Agreements to be legally binding the employee must obtain legal advice on it's
terms and effect. There is no corresponding obligation on the employer. Often the
employer pays for or contributes to the cost to the employee of obtaining that advice.
Penn Legal is able to draft and advise on the terms of Compromise Agreements which
are tailored to suit the needs and to protect the employer from claims arising from the
termination of the employment relationship.