Compromise Agreements
A compromise agreement (sometimes called a ‘severance agreement’) is a legally binding contract entered into by an employer and an employee, which records the basis on which that individual’s employment will come to an end and the terms on which the employee agrees not to bring a claim against his or her employer.
We can advise you what the terms of any compromise agreement really mean and what the effect will be if you decide to accept that the terms you have been offered. Certain termination payments can be paid tax free, although this is not always the case.
The potential value of the rights you would be giving up by signing a compromise agreement requires that, in order for it to be binding, the employee must obtain independent legal advice. Employers generally (although not always) make a contribution towards the cost of that advice.
Our team have helped hundreds of people to get the best possible deal when negotiating compromise agreements.
If you would like to discuss the above please email us, or go back to our other contact details.