Compromise agreements

The agreement is a good way of settling a dispute without the stress and cost of litigation. This applies to both employers and employees.

Typically an employer will agree to make various payments to an employee in return for them agreeing not to pursue a claim. Once signed, this agreement is legally binding on both parties.

For an employee, a compromise agreement is a good way to ensure a complete and satisfactory conclusion to your employment. This may go beyond simple financial settlements and include a provision for your employer to provide you with an agreed reference, something an Employment Tribunal would not be able to order your employer to do.

Linder Myers can help either the employer or the employee. Receiving legal advice ensures that both parties fully understand the terms and consequence of an agreement.

If you are an employee, it is necessary for you to take independent legal advice in order for the agreement to be binding. It is common practice for your employer to contribute some, if not all of your legal costs for the advice you receive, making the service cost free to you.