Employment Law

Compromise Agreements

A Compromise Agreement is a legally binding written agreement which sets out the terms of settlement agreed between an Employer and Employee following termination of employment, including because of redundancy.

Such an agreement usually provides for the employer to pay a severance payment to the employee. In addition, the Compromise Agreement will often deal with the notice element in the contract of employment and may provide for a "payment in lieu" of notice.

In accepting a Compromise Agreement, the employee gives up any present or future right to complain to an employment tribunal, not least in redundancy situations. For an agreement to be valid, the employee needs to receive appropriate independent "specialist advice".

PCM Solicitors is able to provide such advice, often achieving improved terms and conditions, and conveniently located by Monument underground station in the City of London.

Invariably employers meet the employee's legal costs within the terms of a Compromise Agreement, so we are able to provide our services totally free of charge to the employee.

For further information please contact Caroline Ford by email or phone 020 7959 2422