Known both as a Compromise agreement and as a Settlement agreement, this is a legally binding agreement recording a person’s employment being terminated.
For the employer, the agreement will mean that the employee will have no further claim against the employer as a result of a breach of a statutory or contractual obligation by the employer.
For the employee, the agreement will provide a financial sum in exchange for the signing of the legally binding agreement. In addition, the agreement might include an employment reference and details of the notice period.
Hudgell & Partners provide independent legal advice to employees that have been offered a compromise agreement. This will involve a face to face meeting, going through the agreement line by line and answering any questions arising from it. After this, the employee will sign the compromise agreement and Hudgell & Partners will sign and send to the employer a letter confirming that the employee understands the terms of the compromise agreement.
Taking independent legal advice is a statutory requirement of concluding a compromise agreement and, in the majority of cases, the employer will pay the legal fees.