How a Compromise Agreement Can Prevent A Tribunal Process
So one of your employees is leaving and not on good terms. You're a bit worried that you might end up facing them at an Employment Tribunal, but then you hear about a possible amicable solution - a compromise agreement...
A compromise agreement is an agreement made without the involvement of ACAS or an employment tribunal. Indeed, this is often to stop a case getting as far as a tribunal. But it has to meet all the legal requirements for it to be legally valid. Here you have a good starter guide to give yourself an idea:
- The agreement must be in writing. There is a very specific form of words that should be used in drafting a compromise agreement, that's why a skilled adviser will be reassuring.
- It's important that the agreement covers everything that has been complained about. Take care though, having a loose catch-all phrase won't be enough - make sure all the employee's complaints - or might complain about - is included in the compromise agreement.
- An employee signing a compromise agreement is entitled to independent professional advice from a solicitor. Normally you'll have to pay for this as an employer. But, why? Well, failure to do so could be interpreted as trying to prevent an employee from seeking independent advice... and it will help you. However, it's good to know that the costs aren't normally higher than