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Model: FSCAG1010
This fact sheet includes advise on:
- What is a Compromise Agreement Necesary?- What terms does a Compromise Agreement have to contain?- How much will it cost?- What happens if the employee is not happy with the agreement?- When do I have to pay the amount due?
When a relationship between an employee and employer breaks down irretrievably a compromise agreement can be the only way to deal with the situation and prevent a possible complaint to an Employment Tribunal.
A 'compromise agreement' is a legally binding agreement following the termination of employment. It usually provides for a severance payment by the employer, in return for the employee agreeing not to pursue any claim they believe they may have to an employment tribunal. Quite often, the compromise agreement will also deal with the notice element in the contract of employment and may provide for a "payment in lieu of notice".
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