UK Compromise agreements are composed from a mixture of generic clauses (contained in most agreements) and clauses specific to your employment relationship. Here are some sample provisions that are commonly contained in a compromise agreement:
- An agreement on what type of reference the employer is willing to provide. There is no legal obligation for an employer to provide a reference for an employee; therefore it is important that details are provided in the agreement for any references that may be requested. Often the contract will provide only for the very basic type of reference, i.e. employment details and job description outline and therefore is a negotiation point.
- There may be a restriction in the agreement preventing the employee from seeking or starting employment elsewhere, ie within a particular sector. This could be potentially highly restrictive on the employee and thus it is really important to seek professional legal advice if such a clause is included.
- A provision stating the amount of compensation that the employee will be getting under the agreement. Note; a payment of up to