Compromise Agreement Advice

What is a Compromise Agreement?

Put simply it is an agreement that records the terms and the payments to be made, in return for a waiver of statutory employment law claims.

This means that the employer and the employee have agreed the terms of settlement of the relevant potential Employment Tribunal claims and Court claims – hence the term compromise agreement.

For a compromise agreement to be valid, certain conditions must be met by the compromise agreement and the parties to it (these are set out in section 203(3) of the Employment Rights Act 1996 (ERA 1996), with corresponding provisions in other statutes). These are:

1. The compromise agreement must be in writing.
2. The compromise agreement must relate to particular proceedings.
3. The employee must have received advice (usually referred to as independent legal advice) on its effect on their ability to pursue their rights before a Employment Tribunal or Court from a Solicitor.
4. The Solicitor advising must be identified.
5. The compromise agreement must state that the conditions in section 203(3) of ERA 1996 (or the relevant statute) are complied with.

Compromise agreements are powerful forms of contract. If breached (by either party) then the other may breach a claim to enforce the compromise agreement before the Court to secure compliance. This can include claims for injuctions, damages and legal costs. If you choose to sign an agreement you must therefore comply with the terms of it.

Bennett’s Legal Limited is based in Shrewsbury but we offer expert employment law, Employment Tribunal, compromise agreement nationwide.

Through this site we offer employees access to expert employment law and compromise agreement specialist solicitors – our team see compromise agreements daily and are able to assess your position:

1. Quickly;
2. Cost effectively (your employer usually pay for our advice under the terms of most compromise agreements);
3. Professionally – you are dealing with leading expert employment law solicitors who have seen almost everything between our team of experts. We are the compromise agreement specialists who love dealing with people and helping people in what many find a difficult time – we are used to dealing with people in your position.

The Compromise Agreement

Compromise Agreements are very powerful contracts between employers and employees (or former employees) – they restrict future legal actions and Employment Tribunal and Court remedies. As a result compromise agreements are only valid and binding within certain safeguards and limitations:

1. The agreement must be in writing;
2. You must have obtained independent legal advice prior to signing the compromise agreement;
3. If the terms of the compromise agreement deal only with your employment and the manner of termination.

Bennett’s Legal has vast expertise in negotiating the terms of settlement and compromise agreements and advising on the terms offered by the employer. Bennett’s Legal will help and support you if you instruct us to deal with your compromise agreement.

We will review the whole document but we focus on the following in the “average” compromise agreement:

1. Is the money offered in your compromise agreement enough for your case?;
2. Is the tax position dealt with effectively by the compromise agreement?;
3. What restrictions will you have from signing the compromise agreement?;
4. Should we negotiate the compromise agremenent offer for you?;
5. Do you need a reference within the compromise agreement?
6. What about practical issues like your company car, laptop, Smartphone, private healthcare and are they deal with by the compromise agreement?

There is another way of valid settlement through ACAS. Unfortunately ACAS cannot advise you on the merits of terms of any settlement – their role is simply settlement not personalised advice. Bennett’s Legal’s role is to protect your best interests – Solicitors always their clients first so you can be assured we are firmly on your side.

However we offer the chance to have an expert fighting your corner and seeking to protect your interests in an expert and professional manner. Please contact us to discuss your compromise agreement.

Get Advice and Information On Our Fees.

Most potential clients are concerned about legal fees and costs when they contact any law firm. Therefore we try and make things simple but using the following approach:

We always inform you about any fees you may incur before you incur any charge so initial contact is FREE on 0844 472 2378

We offer the following:

1. You can contact us FOR A FREE NO OBLIGATION DISCUSSION about your compromise agreement and to see if we are the right law firm to advise you. The choice is yours but making initial contact with us will cost you nothing. However 9 out of 10 people who contact us go on to instruct us;
2. Your employer will usually pay your legal fees – we will confirm this on sight of your agreement and also negotiate our fees with them if the figure offered is too low or unreasonable;
3. When you may pay a contribution towards your fees:
   a. If you employer declines to pay a contribution towards your legal costs (this is rare and can usually be negotiated)
   b. If we agree some extra legal advice or service on your behalf such as negotiating heavily with your employer over the proposed agreement. Depending on the agreed employers contribution then we may need to charge you some fees – we only do this if there is a benefit to you i.e. more money, reduced tax liability, a better reference is obtained etc and you have agreed to incur these extra costs. Typically our fees in this scenario are £250-750 plus VAT but sometimes the benefits negotiated will be worth many times more than this sum.

Why We Operate This Way Your legal fees are ordinarily paid by the employer in return for signing the agreement (so rarely do you have to pay our fees!). If they have yet to agree to this do not worry we can negotiate this point for you. If the fees are not paid by the employer, or if we negotiate heavily on our behalf and need to charge you a fee it will be agreed with you in advance – our ethos is a fair fee agreed in advance.

With us there will be no surprise fees and no misleading or complex “no win no fee” agreements will apply.

We simply agree a fee then we help and advise you.

What Now?

If you are offered a compromise agreement and want advice on it please do the following:

1. Email/send us the agreement – email contactus@bennettslegal.co.uk or 0844 472 2378;
2. Telephone us for initial advice – such as “Do I need an agreed reference?” – “What can I tell a prospective new employer” – “Why have I been offered this?” – “What happens regarding income tax?”;
3. Agree with us a detailed telephone, Skype, email advice session to ensure you sign the agreement only once you are happy with its terms. This can usually be done the same day if you have the agreement.

Why Bennett’s Legal?

With so many legal advisers and law firms to choose from you may wonder why you should choose specialist employment law firm Bennett’s Legal Limited over “Jones & Jones Solicitors” to give you your compromise agreement advice. Here are just a few reasons:

1. It’s what we do – employment law. Expertise is what you need at this critical time. We do other linked employment law areas as well but compromise agreements are at the heart of Bennett’s Legal’s business;
2. We act for employers and employees on compromise agreements so can see both sides and this helps us negotiated more effectively for you as we understand the employers bottom line aims;
3. We have experience of compromise agreement drafting, negotiation and advising from both sides;
4. We give clear, simple advice on compromise agreements and your potential settlement package – our starting point is “These are the benefits to you….” you therefore will understand the compromise agreement and the settlement effects and the benefits (such as a tax free lump sum of up to £30,000);
5. We deliver a fast, effective service by making use of technology – email, video conference calls (Skype), telephone or in person. You can choose how you are advised on your compromise agreement;
6. Our founder (Paul Bennett) and our compromise agreement team members, Charlotte Bateman and Nick Kennan, are all members of the ELA (Employment Lawyers Association) a specialist trade body for expert employment lawyers;
7. The fact is we love compromise agreements! They help people which is our aim. For many people they provide a great alternative to an Employment Tribunal;
8. Your employer probably has expert legal advice to – we discuss these agreements frequently with other niche expert law firms and the leading national and international firms hence we have the expertise in compromise agreements to put you on a even footing with your employer;
9. Our experience of compromise agreements and legal advice on them includes acting for solicitors and other professionals and FSTE listed company directors.

Please contact us for a no obligation discussion.

Please also visit our main site for more information about Bennett’ Legal www.bennettslegal.co.uk.

We are a firm of Solicitors based in Shrewsbury but offer advice on a nationwide basis for compromise agreements. We regularly advise clients on compromise agreements and Employment Tribunal claims in Shrewsbury, London, Birmingham, Leeds, Manchester, Liverpool, Newcastle, Cambridge, Swindon, Southampton, Winchester, The City, London City, Central London, West End London, Chester, Wrexham, Oswestry, Telford and Wolverhampton.

We advise nationwide most days – so call us to discuss you needs and instruct the compromise agreement legal advice experts at Bennett’s Legal.