Compromise Agreement
COMPROMISE AGREEMENT SERVICES FOR EMPLOYERS IN BOURNEMOUTH
We provide cost effective advice and solutions for employers in Bournemouth seeking a way to resolve employment law problems with an employee in the best way possible and fast. Compromise agreements are a common method of avoiding a protracted dispute with an employee and/or having to retain an employee for weeks or months to avoid unfairly dismissing them when the relationship of trust and confidence has broken down irretrievably.
Compromise Agreement basics
A compromise agreement is a by consent contract, standardised to a large dgree as created by statute, by which employer and employee fully and finally end the employment relationship. Such agreements are commonly used for a variety of situations including an enhanced redundancy payment, where an employee claims discrimination, long term sickness absence, poor performance and such like. The employer normally pays the employee his or her contractual entitlements, does not generally require the employee to work notice and an ex gratia payment is made in consideration of the employee contracting out of the vast majority of rights to make claims.
Advanatages of Compromise Agreements
- Avoiding costs (generally irrecovarable) and risks of defending potential employment tribunal claims
- Speedy and often amicable parting of ways between employer and employee
- Employee has the certainly of a settlement sum
- Confidentiality
The employee must recieve independent legal advice in order for a compromise agreement to be legally valid. Consequently, it is generally standard for the employer to pay the employee’s legal costs, generally capped at about £250.00-£350.00 plus VAT.