Health and Safety Consultancy Services for SMEs in Birmingham, West Midlands and beyond

How to negotiate a compromise agreement
Posted by David Cant on August 22, 2012
0 Comments

The termination of an employment relationship can be a long process, particularly when grievances from the employee feature in the process. In such instances, employers sometimes offer employees a compromise agreement, in order to avoid long and expensive judicial proceedings, which risk tarnishing a company’s reputation.

Your rights and a Compromise Agreement

Compromise agreements, which are also referred to as settlement agreements, have increased in popularity in recent years and their use is becoming ever more widespread. The main reason for this is that they are, compared to the employment tribunal route, a less cumbersome way of resolving a workplace dispute. They also allow the employee and employer to solve the dispute in a less confrontational setting than the courtroom.

When are compromise agreements available?

A compromise agreement is reached during, or after, the termination of an employment relationship. Compromise agreements have serious consequences for employees, and are legally binding on both parties. With this in mind, it is crucial that both parties get expert legal advice.

For an employee, agreeing to a compromise agreement means that they effectively waive their statutory right to claim for unfair dismissal or redundancy payment. In exchange, the employer commonly pays the employee a financial sum, which is called a severance payment. Compromise agreements are statutory recognised and cannot be altered once entered into, unless the conformities for its creation have not been complied with.

How can I ensure that my interests are included?

Because compromise agreements essentially hinder them from lodging a grievance in front of an employment tribunal, employees are required to get legal advice. If such advice is not taken prior to the agreement being signed, it will not be legally valid. Hence, finding a solicitor who can give you the best legal advice is crucial. Contact Law can help you to find a lawyer who has wide experience of settlement agreements and operates near you.

About 

David Cant is a Chartered Safety and Health Practitioner with a brain you can pick. Fluent in practical advice. He has a wealth of Industry experience and is the Director of life at Veritas Consulting.

You can find him on - Twitter and Facebook also Linkedin

This post has been filed in: Guest Blogger

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*

(Spamcheck Enabled)

Latest Blog Posts
The Annual Saga of the School Shoes The Annual Saga of the School Shoes Every year kids are sent home for wearing the wrong uniform – but it’s not usually a... Read More
When HR and health and safety need to join forces When HR and health and safety need to join forces In many organisations, health and safety measures are deployed to protect employees against physical... Read More
Workplace psychology – communicating information and using influence effectively Workplace psychology – communicating information and influencing others effectively Training plays an extremely important role in helping raise health and safety standards. But simply... Read More
Follow all of the latest Veritas Consulting news on our RSS feed
Shares