What are compromise agreements?

When the relationship between employer and employee irretrievably breaks down, one solution is for both sides to enter into a “compromise agreement”. This is a legally binding agreement which allows the employee to receive an agreed tax free lump sum (plus an agreed reference in certain cases) in return for agreeing not to pursue their case to Tribunal.

To be valid, the compromise agreement must be in writing, specify the dispute being settled, and state that the conditions governing compromise agreements have been complied with. The employee must also have received independent legal advice on the compromise agreement from a qualified person, such as a solicitor, insured to provide it.

A solicitor will be able to advise you if the terms offer you the correct protection and whether you are being offered a suitable amount of compensation, so it is important to select a firm with the necessary level of experience in employment law to make sure that you receive the best agreement for you.

Sometimes your employer will provide you with a list of recommended lawyers but ultimately you are free to instruct whoever you wish.

How much will it cost?

It is difficult to give a firm indication of the costs of dealing with compromise agreements because each one is different and relates to that individual’s particular situation. The final charge will depend largely on whether negotiations with your employer run smoothly or become protracted, or whether you wish your adviser to negotiate at all.

Employers will usually provide a contribution towards their employee’s legal fees.  If this is sufficient then we would invoice your employer direct and you would not receive a bill. However, if the contribution did not cover the whole bill then, as our client, you would be required to cover any shortfall.

Why use Blandy & Blandy?

Our team of specialist employment lawyers have many years experience advising on all types of employment matters including compromise agreements. However, unlike some firms we offer high quality employment law advice to both employers and employees and so can see the bigger picture and understand how both sides think.

We can negotiate with your employer on your behalf and amend the terms of the agreement to your satisfaction to ensure that you receive the best terms possible.

We pride ourselves on the efficiency, precision and professionalism with which we handle compromise agreements but don’t just take our word for it. Here is a quote from a blog we came across written by one of our clients:

“My company’s HR department provided me with a list of possible solicitors, but it seemed to me that there was an inherent conflict of interest in choosing any of these. I therefore resorted to the internet and, after reviewing a few, picked the one with the website that gave me most confidence.        

They turned out to be great (Blandy and Blandy - in case you should ever need similar help). Lots of really good advice and I ended up with a more favourable agreement as a result, so well worth the effort.”

Contact us

To speak to one of our specialist employment lawyers contact us on 0118 951 6800 or email employment@blandy.co.uk  You can find more information about the firm and all our services on our website at www.blandy.co.uk