Some Common Clauses In Your Employment Compromise Agreement

The employment compromise agreement is becoming increasingly common in the United Kingdom, with many employers now using these legally binding agreements to avoid a number of problems that could otherwise arise, such as being hauled through the tribunal courts.

The UK compromise agreement that is used by employers often contains a number of fairly standard clauses and may also include some specialist ones that have been added by the employer and to which the employee must agree in order to receive the settlement that is being offered as part of the agreement.

An employment compromise agreement is basically an agreement that offers full and final settlement to the employee in return for agreement to the terms of the agreement. These terms can vary depending on the nature of the business and on what the employer has elected to have put into the agreement. Obviously the employee would need to seek independent legal advice prior to signing, as without this the agreement is not legally binding. The employee is not obliged to sign the agreement at all if he or she does not believe that it is fair or in their best interests to sign.

The standard clause in a UK compromise agreement is that the employee is accepting the offer by way of full and final settlement of he or she signs. This means that no further action can be taken against the employer by the employee with regards to the issue, so the employee is effectively signing away the right to take the matter to court or through any other legal process. That said, there are some exclusions to this. This includes any personal injuries that you were not aware of when signing the agreement, cases where the employer has breached the terms of the agreement, and issues relating to accrued pensions.

Other common clauses often included in these agreements include:

Confidentiality clauses: This is where the employee agrees not to discuss the terms of the agreement with others. It can also mean not disclosing that there was compromise agreement at all depending on the clause. Employees may be singing to say that they will not go to the press about the matter. The wording and terms of the clause will determine what the employee can and cannot do.

Non-derogatory statements clauses: This is where the employee is signing to say that he or she will not bad-mouth the company to current or former employees, the press, and whoever else is included in the clause.

Don't forget that in United Kingdom, any employee will need independent legal advice before signing a compromise agreement - and it's best to get that advice from a solicitor specializing in comprise agreements


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Looking for a UK compromise agreement? Contact Bonallack & Bishop today - for expert advice on your employment compromise agreement. Tim Bishop is senior partner at the firm, responsible for all major strategic decisions. He has grown the firm by 1000% in 13 years and has plans for further expansion.