Knowing What You Can Do After Signing A UK Compromise Agreement?

Compromise agreements are a tool used by employers to help resolve employment disputes whilst avoiding statutory claims against them. These agreements are legally binding contracts and can imply different obligations on both parties involved. This is why it is very important for both parties to know what their rights will be under the agreement and what obligations it will impose upon them before they sign. A party could easily be in breach of the agreement if they do not understand these obligations properly.

A compromise agreement can be used in numerous different circumstances, an employer might think of using one in any of the following examples; dismissal of an employee, possible redundancy, work related disputes. What is quite important however is that employee knows that a UK compromise agreement is a legally binding document and therefore they must understand what they are signing against.

The employment compromise agreement will contain a set of terms and conditions which dictate exactly what you are and are not able to do. If you sign this agreement which includes these terms you will be legally obliged to obey them. The terms will be relevant to the subject upon which the compromise agreement was made, however they will also detail information regarding future confidentiality obligations, possible staff relations etc.

Without any prior legal knowledge it can sometimes be difficult to completely understand what your obligations are under the agreement. This will also require you to have a full understanding of all the terms contained within the agreement. In light of this it is quite important that you seek legal advice before even agreeing to enter into a UK compromise agreement, let alone signing one. The purpose of a specialist lawyer is to make sure they explain all the terms to you so that you know what your obligations are.

The main bits of advice that you will seek to require from your solicitor are as follows; firstly how signing against a compromise agreement will effect your future, secondly what the terms of the agreement mean to you and thirdly what obligations you must adhere to in order to not be in breach of the agreement.

As well as the above it is actually a statutory requirement that an employee seeks independent legal advice before they can sign a compromise agreement, there solicitor should then also be named inside the agreement on record.


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Do you need advice on a UK compromise agreement? Contact Bonallack & Bishop, specialist solicitors who can help you with your employment compromise agreement. Senior Partner Tim Bishop is responsible for all major strategic decisions, seeing himself as a businessman who owns a law firm. Tim has expanded the firm by 1000% in 13 years.