Employment disputes are often costly, both in monetary terms and the amount of management time taken up. One way to avoid such actions is through the use of compromise agreements.
A compromise agreement is a legally binding agreement between an employer and an employee which sets out the financial and other terms on which they will go their separate ways.
There are various circumstances in which a compromise agreement may be used, including redundancy, mutual agreement, dismissal and to settle an employment tribunal claim.
In essence, they include a severance payment made by the employer in return for the employee agreeing not to bring certain legal claims against the employer. Therefore, they facilitate a clean break with no further repercussions for either party so long as they adhere to the agreement.
At Palmers Solicitors, we have the expertise required to prepare and advise on such agreements, and will always act in your best interests. Our responsive and proactive approach produces quick turnaround times, essential if you are aiming to terminate an employee’s contract as soon as possible.
We have produced a guide to settlement agreements which is available to download from our website at http://www.palmerslaw.co.uk/our-services/employers.
For more information and advice, please contact Lara Murray.