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.