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Compromise Agreements

Covering Oxford, High Wycombe, Aylesbury, Banbury, Witney and more.

In summary, a compromise agreement is a legally binding agreement between an employer and an employee, usually on or after termination of employment, under which the employee agrees not to pursue any claims against the employer in return for some sort of ex gratia benefit.

If you are an employee who has been presented with an offer of settlement, or believes that circumstances may be heading that way, we advise that you contact us as soon as possible. In fact, for the agreement to be binding, an employee must be independently advised by employment solicitors. We can explain the terms and effect of a compromise agreement and answer and questions you may have. Since once the compromise agreement is signed you no longer have the right to make a complaint to an Employment Tribunal, it is essential you know exactly what to do.

In respect of costs, the compromise will normally contain a contribution towards your costs, and often this will completely cover all your costs. We can advise on:

  • Whether the agreement is reasonable in the circumstances.
  • What the clauses mean, and the effect of the agreement.
  • The taxable status of the payments to be made under the compromise agreement.
  • Notice payments / wrongful dismissal / pay in lieu of notice / breach of contract.
  • Negotiating amendments to the agreement, and if appropriate a higher settlement figure.
  • Post-termination restrictive covenants.
  • Confidentiality obligations.

From an employer's point of view, it is critical that all compromise agreements are drafted by solicitors with experience in this area of law, and up to date information on the courts' interpretation of compromise agreements. We here at Oxford Employment Law Solicitors have extensive experience on advising both employees and employers on compromise agreements, and obtain up to the minute information on legal developments concerning compromise agreements. We can therefore ensure that the compromise agreement protects you, as an employer, against future claims by the employee.

Feel free to get in touch as we cover a wide area including Oxford, High Wycombe, Aylesbury, Banbury, Witney and more.

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