Compromise agreements

Your employer may have asked you to sign a compromise agreement to terminate your employment.

What is a compromise agreement?
A compromise agreement, (also known as a termination agreement or a section 203 agreement) is a contract between an employer and an employee. Effectively, the employer promises to give the employee something (normally cash) in return for which the employee promises not to bring employment claims against the employer.

What is the effect of a compromise agreement?
Once you have signed the agreement, you may be barred from bring any claims against the employer. In order for the agreement to be legally enforceable however, you need a qualified adviser's signature on the agreement.

My job as your solicitor is therefore to ensure that you understand what you are signing. We should also discuss whether or not the money being offered is fair and whether the other terms of the agreement are fair or not.

What about fees?
Quite often, your employer offers to pay my fees up to a certain amount. Depending on the complexity of the agreement, this may cover all my fees.

What do you need to do?
If your employer has offered you a compromise agreement, you need legal advice!