Settlement Agreements (Compromise Agreements)

Posted on February 20, 2014

Settlement Agreements (Compromise Agreements)

I have wide experience in advising employees on the terms and effect of Settlement Agreements (Compromise Agreements).

In employment law an agreement (formerly known as a Compromise Agreement) whereby an employee or worker agrees not to pursue certain employment tribunal claims against a respondent or potential respondent to a claim.  Commonly used to record an employee’s terms of departure where they are to receive a termination payment in return for the waiver of all actual and potential statutory (and common law) claims against the employer.  For a valid waiver of statutory employment rights, certain statutory conditions must be met:

  • The agreement must be in writing.
  • The agreement must related to a particular complaint or particular proceedings.
  • The employee must have received independent legal advice on the agreement and in particular on its effect on their ability to pursue the statory rights in question.
  • The adviser must be identified in the agreement.
  • The agreement must state that the conditions regulating settlement agreements in the relevant legislation have been met.
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