A compromise or settlement agreement is a statutory arrangement under Section 203(3) of the Employment Rights Act involving an offer from an employer to an employee to agree to mutually terminate the employment relationship, usually to pay salary to a certain date, to pay part or all of the contractual notice period and often make an ex gratia payment (which can be partially tax free).

To be legally binding the employee must have received separate, independent legal advice, generally paid for by the employer.

Please contact us for thorough, expert and impartial advice if you have been offered a compromise agreement or if you are an employer wishing to avoid possible claims arising on redundancy or disputes with employees.

Who can help you with this...

Paul Gardener