COMPROMISE AGREEMENTS

A Compromise Agreement is a signed contact between an employee and employer. The terms of the agreement are usually that the employee agrees not to issue or continue proceedings against their employer in return for a payment of money.

A compromise agreement is only valid if the following conditions are satisfied:-

1.  The agreement is in writing,

2.  The agreement refers to the complaint or proceedings of the employee,

3.  The employee has received advice from a relevant independent adviser   about the terms of the settlement and the ability of the employee to pursue any further claims,

4.  The employee’s adviser must have an insurance policy in force to cover the risk of a claim being made by the employee for any loss suffered.

5.  The agreement must identify the adviser,

6.  Finally, the agreement must state that the conditions regulating compromise agreements under the relevant Act or Regulations are satisfied.

Provided that the terms of the Compromise Agreement comply with the above, the terms of the agreement are decided between the employee and the employer. To look at the terms of a typical Compromise Agreement, please click on the link below

EXAMPLE OF A TYPICAL COMPROMISE AGREEMENT