Thursday, August 25, 2011

Sponsored blog post: Is my employer going to pay for an employment lawyer if they offer me a compromise agreement?

A compromise agreement between an employee and their employer is a legally binding agreement, regarding the termination of employment. Compromise agreements may be used in relation to unfair or wrongful dismissal, where the employer will offer severance pay in return for the non-pursuance of a legal claim. Increasingly, they are also used in cases of redundancy.

An employer may want to avoid a claim against them being pursued in a tribunal. They can engage an employment lawyer and negotiate a compromise agreement that will constitute a full and final settlement with the employee. The terms may include:
·       A statement of the sum of money the employee will receive
·       Confidentiality terms for both the employer and employee
·       A stipulation that the employee is prevented from making a future claim

It is standard practice that the employer will pay for an employment lawyer if they offer you a compromise agreement. This is because defending such legal claims against could be expensive and bad PR; and thus, a compromise agreement could benefit the employer. In addition, you must receive independent legal advice from an employment lawyer, before you sign the compromise agreement, in order to make it legally binding. 

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