In the current climate the compromise agreement is common practice between many employers and employees when employment disputes happen. I’ve no idea how I got onto the subject but I’ve been doing a bit of research (aided in part by Thomas Mansfield who I mention later!).
In layman’s terms, the agreement is an effective and useful way of resolving a range of employment disputes; disputes that can too often become overblown and aggressive, timely and costly. The agreement is a legally binding one, and is the follow-up to a termination of employment.
Employers are frequently happy to legally bind relationships with their employees in this fashion, so as to prevent any further issues or disagreements at a tribunal, particularly when it comes to making redundancies. It serves companies to protect themselves; just as much as it serves the employee.
However, the key thing to consider as an employee is that in signing a compromise agreement you ensure that you cannot take any claim concerning your dismissal to an employment tribunal at any future date.
Seeking sound advice prevents jumping the gun in unemployment panic and running to the services of any law firm: don’t. The solicitor and firm who play your advisor, plays a hugely vital role.
Interestingly the compromise agreement does not become binding until AFTER it has been talked over with a solicitor. So you must seek independent advice from a solicitor.
So if you do find yourself in a situation when an employment agreement is on the table a) read up as much as you can about them and b) locate an appropriate solicitor. Thomas Mansfield are the ones I spoke to about compromise agreement for this blog but there are lots out there. You should at the very least ensure you engage a firm who specilise in employment law.
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