What is a compromise agreement?

A compromise agreement is a document that employers may present to their employees for signing. In order to be legally binding, the compromise agreement must be counter-signed by a solicitor advising the employee and who is independent of the employer. The employer will normally pay all or part of the employee’s legal fees incurred in receiving the legal advice. The compromise agreement often offers an employee an amount of money over and above contractual obligations. This money is offered in return for the signing of the compromise agreement. The wording in the compromise agreement means that the employee is signing away any potential claims they may have against the employer as a result of the employer’s actions or dismissal.

A compromise agreement is a very important agreement. Once signed the employee would not normally be able to complain about any treatment he/she had received from the employer.

Employers – bulk redundancies

Over the past 18 months, we have established links with a number of blue chip companies throughout the country as a well-established, reputable, yet commercially competitive referral to employees being offered compromise agreements.

In our experience, companies have been keen to refer or recommend employees to a specific firm of solicitors, particularly during redundancy, restructure or relocation exercises. In this situation, we have been able to work closely with the company to ensure that the signing of compromise agreements has been completed effectively, efficiently and at a discounted rate whilst remaining totally independent of the company .

Additionally, we are able to receive clients to our offices or travel to agreed or preferred locations. In the case of medium to large-scale redundancies, we are able to travel independently to your company’s site to meet with clients.

Should you wish to discuss establishing a similar relationship, we would be more than happy to discuss ways in which we would be able to provide a more cost effective and competitive service to assist in the completion of severance agreements.