Compromise Agreement FAQs
What are the statutory requirements for a compromise agreement?
In order for a compromise agreement to be valid, certain conditions must be satisfied:
- The agreement must be in writing.
- The agreement must relate to a particular complaint – a standard form compromise agreement template is often not enough to meet this requirement.
- The employee must have had legal advice from an independent adviser.
- The agreement must identify the legal adviser.
The agreement must state that the conditions regulating compromise agreements have been satisfied.
What are the usual terms of a compromise agreement?
The contents of a compromise agreement are subject to statutory requirements. Our compromise agreement solicitors often include provisions relating to the following:
- Payment of salary, outstanding expenses or loans.
- Payment in lieu of any holiday entitlement or notice.
- Pension enhancements.
- Compensation for loss of employment.
- Purchase of company property, such as a company car.
- Waiver of claims by the employee, including a warranty that the claims listed are the only claims which the employee has against the employer.
- Payment of outplacement fees.
- Contribution to legal fees.
- Withdrawal of any tribunal proceedings.
- Indemnity from the employee in relation to tax and National Insurance contributions as appropriate, and in the event that a claim is pursued.
- Return of the employer’s property.
- Garden leave until termination.
- Re-assertion or modification of existing restrictive covenants.
- Confidentiality of the employer’s information.
There are strict requirements as to which statutory claims may be settled by a compromise agreement. For an up-to-date list please contact us.
How much does a compromise agreement cost?
The employer usually pays the legal costs for the employee to receive independent legal advice. We offer fixed fees to advise employees once they receive a compromise agreement from their employer. Our fees start from as little as £250 plus VAT. If we are instructed early on we can even get involved in the drafting or amendment of the compromise agreement especially where there may be a number of compromise agreements for a particular employer. We are flexible with our fees and endeavour to work within the employers’ budget.
Which areas do you cover?
As specialist compromise agreement solicitors we often act for clients throughout the UK. More often than not there is no need for our clients to attend our offices.
Compromise agreements are usually sent and received by email, fax or post. Client instructions can be given by telephone, email or fax. On that basis, our employment solicitors can advise clients in the following areas:
London, Birmingham, Liverpool, Leeds, Sheffield, Bristol, Manchester, Leicester, Coventry, Kingston upon Hull, Bradford, Cardiff, Belfast, Newcastle upon Tyne, Stoke-on-Trent, Wolverhampton, Nottingham, Plymouth, Southampton, Reading, Derby, City of Salford, Dudley, Northampton, Portsmouth, Luton, Preston, Milton Keynes, Sunderland, Norwich, Walsall, Swansea, Bournemouth, Southend-on-Sea, Swindon, Dundee, Huddersfield, Poole, Oxford, Middlesbrough, Blackpool, Bolton, Ipswich, Telford,York,West Bromwich, Peterborough, Stockport, Brighton, Slough, Gloucester, Watford, Rotherham, Newport, Cambridge, Cheltenham, Exeter, Eastbourne, Sutton Coldfield, Blackburn, Colchester, Oldham, St Helens and Crawley.
If you would like to meet with one of our employment solicitors in person, feel free contact us to arrange an appointment.
To make an enquiry or to get a free online compromise agreement quote, please fill out a contact form.
T: +44 (0) 1753 486 777