| In many cases, some employers want to be able | | | | employers are not comfortable at having a |
| to abruptly dismiss any employee even without | | | | former employee work for a direct competitor |
| following standard procedures. There may be no | | | | after job termination. Employees are usually |
| need to have a fair reason for employment | | | | restricted from holding an exactly similar post in a |
| dismissal. That is why compromise agreements or | | | | competing company at least within several years |
| severance agreements are very popular these | | | | after the dismissal. This may not be unfair to |
| days. Under the agreement, the employer would | | | | employees because compromise agreements |
| pay a hefty sum of money to the employee in | | | | usually come with hefty compensation packages. |
| exchange for all the waived rights to any form of | | | | Most compromise agreements state keeping |
| claims that may be filed in the future against the | | | | private of confidential matters including the terms |
| employer. | | | | of the document and important trade secrets. |
| For the part of the employees, compromise | | | | The employees would be held legally responsible if |
| agreements are attractive because they earn a | | | | they breach the confidential agreement. The |
| lump sum by being dismissed from work. They | | | | agreements therefore contain assurances in |
| could immediately seek employment in another | | | | writing on the part of both the employer and the |
| company in case their current employment is | | | | employee. |
| terminated. Most of all, there is legal cost for | | | | Compromise agreements also include settlement |
| signing such documents. There is a requirement to | | | | of any form or claims the employee might seek |
| hire an employment solicitor who would sign as a | | | | from the employer in the future. This is the main |
| third party to the agreement, but the employer | | | | reason why many employers aim to put such |
| should be responsible for covering the professional | | | | agreements with employees. Possible employment |
| and legal fees. | | | | tribunal claims could be costly and damaging so |
| The agreements may vary from one employee | | | | they have to safeguard the business against such. |
| to another. The differences may be set by | | | | In most cases, an agreement also includes mutual |
| specific circumstances. An employment solicitor | | | | agreement about making derogatory comments |
| usually drafts compromise agreements following | | | | about each other. Employers want to protect |
| specific instructions from the employer. If you | | | | their image and so do employees. Some |
| have not signed such a document before, it would | | | | agreements even include details about what other |
| help if you would familiarize yourself with what | | | | employees would be told regarding the |
| compromise agreements usually contain. | | | | employment termination to protect the interests |
| The document contains details about the amount | | | | of both parties. |
| of monetary compensation that should be paid to | | | | You should hire a highly qualified, reliable, and |
| the employee, including any non-taxable | | | | trustworthy employment solicitor, which should be |
| component. For some people, compensation | | | | independent from the employer. The law requires |
| packages make up the most significant factor in | | | | that an employee be legally guided appropriately |
| compromise agreements. | | | | before signing a compromise agreement. That is |
| Expect the agreement to point out specific | | | | why solicitors are also made signatories of the |
| restrictions placed on future employment. Some | | | | document. |