What is a Compromise Agreement?
In simple terms, a Compromise Agreement is a legally binding written agreement between an employer and an employee that is entered into on the termination of an employee’s employment.
The Compromise Agreement sets out the terms upon which the employee and the employer are to part company. It invariably involves the employee receiving a sum of money as severance pay or compensation, in return for which the employee agrees not to bring a claim against the employer in the Employment Tribunal or court.
The need for a Compromise Agreement Solicitor arises in a variety of situations, including redundancy. More questions answered...