Compromise Agreements In London

A Compromise Agreement is a method of recording a set of procedures with a particular employee prior to severance. The main reason is that once something has been agreed, any possible claim in Court or at a tribunal would not be possible. The Government have tried to make things easier for both parties; it allows both sides to have confidential discussions before any formal dispute. This can be a good thing if handled correctly.

  • The Employee may get a financial settlement with no initial deduction fees. They may also be able to receive a job reference and a clause preventing either party from “Bad mouthing” each other, very useful when seeking another post.
  • The CIPD survey suggested that about half of UK companies seek a Compromise Agreement to remove poor or inefficient workers (38.95%) avoid legal problems (25.75%) and make it simpler to terminate contracts with senior staff. (24.3%)

There are a number of areas not covered by employers seeking a compromise agreement that normally can be covered by unfair dismissal or breach of contract conditions. These include bullying, physical assault, discrimination and suggesting that unless the employee agrees to a compromise, then they will be dismissed without any comeback.

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