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Employee Compromise Agreement

Compromise agreements from the employee point of view

From an employee's perspective, the advantage of agreeing a compromise agreement is that typically they may be offered anywhere between the equivalent of one to six month's salary over and above any contractual notice entitlements as an ex gratia, compensatory and often tax free amount as an inducement to sign up.

When weighed against the statistically low chances of an employee succeeding at Tribunal and the low value of awards, an ex gratia offer is often a more advantageous outcome.

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