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Employment Law Solicitors - Compromise Agreements
 
 

Compromise Agreement

 

The Employment Law Solicitors:

Compromise Agreements

 

When the relationship between employer and employee irretrievably breaks down, one solution is for both sides to enter into a 'Compromise Agreement' which is a legally binding agreement which allows the employee to receive an agreed tax free lump sum (plus an agreed reference in certain cases) in return for agreeing not to pursue their case to Tribunal.

 

The employer’s solicitor usually draws up the Compromise Agreement. To be valid, the Compromise Agreement must be in writing, specify the dispute being settled, and state that the conditions governing Compromise Agreements have been complied with. The employee must also have received independent legal advice on the Compromise Agreement from a qualified person insured to provide it such as their solicitor, and the Compromise Agreement must identify who that person was. Usually, the employer pays the costs involved in the employee taking this advice.

 

The Employment Law Solicitors, the brand, is part of Antrobus Solicitors, a firm regulated by the Solicitors Regulation Authority. Details of the professional rules which regulate solicitors can be found at the following website address: http://www.rules.sra.org.uk

 
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