Compromise Agreements for Employers - By: Tim Bishop

You haven't slept well; your neck is stiff and you have a tense sensation in the stomach. Diagnosis: one of your employees is leaving the job, things have gone a bit bitter and you feel anxious about the idea of them taking you to an Employment Tribunal. Well, here you have good news: a compromise agreement can settle things amicably for both of you. Read on...

A compromise agreement is one made without involving ACAS or a tribunal. Indeed, this is often to stop a case getting as far as a tribunal. But it has to meet all the legal requirements for it to be legally valid. Here you have a good starter guide to give yourself an idea:

- The agreement must be in writing. There is a very specific form of words that should be used in drafting a compromise agreement, that's why a skilled adviser will be reassuring.

- It's important that the agreement covers everything that has been complained about. Take care though, having a loose catch-all phrase won't be enough - make sure all the employee's complaints - or might complain about - is included in the compromise agreement.

- An employee signing a compromise agreement is entitled to independent professional advice from a solicitor. Normally you'll have to pay for this as an employer. But, why? Well, failure to do so could be interpreted as trying to prevent an employee from seeking independent advice... and it will help you. However, it's good to know that the costs aren't normally higher than £500.

- Check with your adviser he/she has appropriate professional indemnity insurance and that this person is identified in the agreement with their name and signature.

- The exact sections of law which the compromise agreement refers to should be listed. For example, 'a claim under Parts X or XI of the Employment Rights Act 1996'. And here, again, is where experienced compromise agreement solicitors makes things easier for you.

Do you feel your stiff neck easing, the tension lifting? Well, a complicated and stressful process through a tribunal is not anyone's cup of tea - for the employer or the employee - so the chances they accept to sign a compromise agreement and settle things amicably are very good. The solicitor will help you to understand all the important points and benefits this compromise agreement will bring you.

So enjoy the rest of the day and a good sleep tonight!

About the Author

Bonallack & Bishop are specialist compromise agreement solicitors with particular experience of advising on any redundancy compromise agreement. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions. He has grown the firm by 1000% in 13 years and has plans for continued expansion.

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