Severance issues, Compromise Agreements

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Severance issues / Compromise Agreements

Compromise Agreements are a way of ending the employment relationship. Often they are used by an employer as a way of implementing redundancies. Sometimes they are used when it has been agreed by both parties that the employee will leave, for example because the relationship between the parties has broken down. Compromise Agreements will usually provide for a payment to an employee in return for the employee agreeing to waive their rights to bring a claim against the employer. A compromise agreement must be signed off by an advisor such as a solicitor in order for it to be binding. The employer will usually agree to pay the fee or part of the fee to the independent solicitor who advises the employee.

Usually tax free payments can be made via compromise agreements which will benefit both parties. Often the agreement will provide for the provision of a reference from the employer and set out obligations after the employment has ended such as restrictive covenants. We can produce such agreements for an agreed fixed fee.

If you require information or a consultation call us now on 0800 046 3065.

 

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