What Advantage Is There In A Compromise Agreement?

A compromise agreement can often be the best way to leave your job with dignity, but what should you look out for?

Is A Compromise Agreement For Me?

Redundancy isn't the end of the world - with generous severance pay, time to find your dream job and put your feet up for a whie, you might wonder what you were so worried about. But how do you leave your job with this sort of security? Often a compromise agreement is the safest and most dignified way to leave your job, and it works for both you and your employer. Your employer receives the security he needs to make sure you won't take action against him in an employment tribunal, and you can leave your job with your head held high, financially stable and with a good reference.

However, it's extremely important to get a solicitor to look over the agreement before you sign it. You can be sure that your employer has used a solicitor to ensure that the agreement is set out legally, and often to make sure that the terms are in his, or the company's, best interests. Signing it at this stage may mean sacrificing your rights upon redundancy. Furthermore, agreements are often written in a complicated manner, using legal jargon which tends to confuse and disorientate. You want to make sure that you understand the terms of the agreement, that you know what your rights are, and that you're getting the best deal possible. It would be hugely frustrating if, after you'd signed the agreement, you found out that you were entitled to a much higher severance pay and, now the deal is signed, you can't question it in an employment tribunal. Another restriction a compromise agreement may place on you is preventing you from working for any competitor company or in the same position within the same company but based in a different location. This could severely restrict your options when searching for a new job.

Of course, you don't want to dig into your severance pay to afford the legal costs required for a solicitor to look over your agreement. That's why most employers will pay the legal costs for you if you ask. If they refuse, be suspicious of why they don't want you to get independent legal advice and read over the agreement closely and carefully.

Once the agreement is signed, you can no longer claim anything against your employer. As this is the case, make sure that your employer has followed the correct redundancy procedures. Did he consult all staff about the possibilities of redundancy? Did he select employees fairly? Did he try and transfer affected employees to another part of the business? Did he have a legally valid reason for terminating your contract of employment, or do you believe redundancy was the reason stated for your leaving, when there was actually a different reaso for your terminatinon of employment? Make sure before you sign anything that you are not being unfairly or wrongfully dismissed, which are serious legal issues that cannot be addressed once a compromise agreement has been signed.

It's not all doom and gloom however! Most employers will be sad to see you go and feel unhappy about the need to make you redundant, and will happily offer you acceptable severance terms, allowing you to go your own way while maintaining a pleasant relationship with your previous employer and colleagues. Still, don't forget that redundancy is on the rise and it is important to know where you stand should it happen to you!

If we can help you with a compromise agreement, please call us on 01737 761004 or fill out our free online enquiry form.

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