Compromise Agreements

A Compromise agreement is a legally binding, statute based agreement between employer and employee to mutually agree to terminate the employment relationship. Such Agreements are commonly used as a means to an end by both employer and employee to avoid the cost, risk and delay of possible legal proceedings and are sometimes an opportunity for an employer to offer an enhanced package to an employee facing redundancy.

Common issues which involve negotiation in compromise agreements are :

The amount of the ex gratia compensation payable
The wording of any reference to be given by the employer
Issues arising on transfer of any company pension