Compromise Agreements
As a general rule “out of court settlements” of employment disputes are not legally binding in that they cannot exclude employees’ rights to take the matters concerned to an Employment Tribunal. However, this is legitimately circumvented by entering into formal compromise agreements with the employees which fulfil certain legal requirements.
They involve 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 additional ex gratia payment as an incentive to the employee to sign. In return the employee will usually give up any right to make any claim or any future claim arising out of his employment against his employer (certain exclusions apply).
At Kew Law we have the experience in drafting compromise agreements. Contact us here or call 0800 987 8156 to speak to an employment law solicitor.
Solicitors in Braintree, Witham, Maldon, Colchester, Wickford, Burnham-on-Crouch and Chelmsford
