Compromise Agreement Solicitors in Tunbridge Wells

What is a Compromise Agreement and can Duxburys Solicitors help?

A Compromise Agreement is a legally binding document which sets out the terms upon which the parties (the employer and the employee) agree to part at the end of the employment relationship. 

The Agreements (soon to be known as Settlement Agreements) are commonly used to bring the employment relationship to an end in a wide variety of situations that occur at work, such as redundancy, long term sickness absence or restructuring.

In most situations the employer has decided to part company with the employee and wants to bring the employment relationship to a close quickly and amicably without the risk of receipt of an Employment Tribunal claim.

For a Compromise Agreement to be legally binding, the employee is required to take independent legal advice.   This is why in most cases, the employer will make a contribution towards the employee's legal fees, typically offering £250 to £500 plus VAT.   The value of the employer's contribution can sometimes be increased as part of the negotiations regarding the specific terms of the Compromise Agreement.

Once the document has been signed by both parties the terms cannot be renegotiated.  The employee waives any rights to make a claim against the employer.  In exchange, the employer will usually pay the employee what is known as a compensation or a termination payment, as well as any contractual payments that may be outstanding, such as outstanding salary, bonus or holiday pay. 

As Tunbridge Wells Employment Solicitors we have years of specialised experience in advising both employees and employers on Compromise Agreements for clients in London and the South East generally.

We advise on all aspects of Compromise Agreements, including the amount and tax treatment of the both the compensation and contractual payments as well as other matters including confidentiality, restrictive covenants and return of company property.

From a taxation perspective, genuine redundancy and compensation payments of up to £30,000 in total can be made tax free.  

We are experienced in acting for both employers and employees from our Tunbridge Wells location.

In the first instance please either call us or complete the enquiry form on the right and we'll call you.

Duxburys Solicitors

Compromise Agreement Solicitors

Tunbridge Wells, London, South East

Tel: 01892 538762