Compromise Agreements

A compromise agreement is a legally binding agreement between an employer and an employee, under which, in return for some sort of ex gratia benefit (usually a severance payment) the employee agrees not to pursue any claims against the employer.

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 a solicitor.  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
• 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 the compromise agreement is drafted by solicitors with experience in this area of law, and up to date information on the courts’ interpretation of compromise agreements.  At Oxford Employment Law Solicitors we have extensive experience on advising both employees and employers on compromise agreements, and obtain up to the minute information on developments concerning compromise agreements.  We can ensure that the compromise agreement protects you, as an employer, against claims by the employee.