| This article aims to answer some of the most | | | | agreement when they know they might lose at |
| commonly asked questions about compromise | | | | an Employment Tribunal, why should I not take |
| agreements in the UK. The laws surrounding | | | | them to a Tribunal? |
| compromise agreements in other countries vary | | | | Firstly, an employer might prefer to keep the |
| so be sure to take advice relevant to where you | | | | matter private rather than fighting the case |
| live. | | | | before an Employment Tribunal. Therefore it is |
| When are compromise agreements used? | | | | not always the case that the employer knows |
| A compromise agreement is often put forward | | | | that they 'might lose'. |
| by an employer that is going to breach an | | | | Secondly, compromise agreements are |
| employee's rights by terminating their | | | | significantly cheaper than taking a claim before a |
| employment contract. It is normally offered when | | | | Tribunal. The following savings can be made if |
| the employer realises that they may lose an | | | | such an agreement is signed: |
| Employment Tribunal. This means that they are | | | | - Tribunal fees |
| frequently used in cases of discrimination, unfair | | | | - Extensive legal fees |
| dismissal, constructive dismissal and redundancy. | | | | Cost savings are also made for the employee |
| Compromise agreements are becoming more and | | | | because it is usual practice for the employer to |
| more common in redundancy cases as employers | | | | pay both sides' legal fees for an agreement. When |
| have increasing legal responsibilities when dealing | | | | taking a claim to an Employment Tribunal, |
| with redundancies. This means that it is easy for | | | | however, both parties normally have to pay their |
| an employer to breach an employee's rights by | | | | own legal costs at the conclusion, depending on |
| making them redundant. A compromise | | | | the outcome of the case. |
| agreement is consequently used by the employer | | | | Finally, a compromise agreement can save you |
| to compensate the employee for this breach and | | | | the stress and drama of taking a claim to a |
| to prevent them from making a claim against | | | | Tribunal. It keeps the matter private and allows |
| them at the Employment Tribunal. | | | | party autonomy. Party autonomy means that you |
| Does a compromise agreement prevent me from | | | | remain in control of what is agreed rather than |
| taking any legal action against my employer? | | | | passing this control over to an impartial judge. |
| No. It will only apply to the subject of the original | | | | What if my employer fails to pay me the agreed |
| breach. The law is very clear that it is illegal for an | | | | compensation, can I enforce the agreement like a |
| employee to 'contract out' of his/her employment | | | | Tribunal judgement? |
| rights. Therefore if a separate claim against your | | | | A UK compromise agreement is a legally binding |
| employer arose you would still be able to take it | | | | contract. If your employer fails to pay the |
| to an Employment Tribunal, irrelevant of the | | | | compensation money in the time agreed, you can |
| agreement. | | | | then sue them for breach of contract to make |
| Generally claims that are made after an | | | | them pay what you are owed. On the other |
| agreement is signed are as follows: | | | | hand, if you fail to keep to your side of the |
| - A breach of contract claim (regarding the terms | | | | agreement, you also can be sued for a breach of |
| of the agreement) | | | | contract. |
| - Personal injury claim (which is not excluded by | | | | Don't forget that you need to take independent |
| the agreement) | | | | legal advice on a UK compromise agreement for |
| - Claims in relation to accrued pension monies | | | | it to be valid - so make sure you consult specialist |
| If an employer only really signs a compromise | | | | compromise agreement solicitors. |