What is a Compromise Agreement?

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What is a Compromise Agreement?

Posted On : Jul-19-2011 | seen (201) times | Article Word Count : 530 |

A Comprehensive agreement is a legally binding agreement the termination of your employment. It usually provides a severance payment by your employer in return for which you warrant not to pursue any claim you may have to an employment tribunal. Mainly, the Compromise Agreement will also deal with the notice element in your contract of employment and may provide for a “payment in lieu”.

The employers are now increasingly using compromise agreements as a mechanism for preventing possible future complaints to a tribunal, s especially in redundancy situations.

Compromise agreement are recognised by statute and are the only way a claim can be legally binding without tribunal proceedings having been initiated.

You must have the compromise agreement explained by an independent solicitor before the agreement becomes binding. The solicitor giving the advice must also sign the agreement and certify that the appropriate advice has been given.

After the negotiation of a compromise package on departure of an employee, an agreement is concluded on the employee signing a compromise agreement. It is an agreement that allows “full and final settlement” for some of the claims between the employer and the employee.

One of the main purposes of a compromise agreement is to prevent employees from bringing or pursuing a claim before the Employment Tribunal. The statute requires compromise agreements to meet the condition like the agreement must be in writing and has some features. It must be relate to a particular complaint within their contemplation. The employee must receive independent legal advice. The advisor must have in force a professional indemnity policy. The agreement must identity the adviser. The agreement must state the conditions relating to compromise agreements have been satisfied.

The features are common to all compromise agreements but your compromise agreement should be negotiated and drafted to your circumstances. In case contact is required it can be made at Andre or Ruth at Stone Joseph solicitors (0207 8549098), a specialist boutique employment practice to advise on what are the most relevant and important issues for you.

Why should I Sign a compromise agreement?

A compromise agreement governs the termination of the employment relationship. The main aim of a compromise agreement is that in exchange for a financial package the employee will waive their right to be able to bring certain claims against the employer in an employment tribunal. It is in essence a “full and final settlement” for any potential claims.

There are some of the requirements that each of the compromise agreement must satisfy and these are dealt with in Overview of a Compromise Agreement which can be found in the London Compromise Agreements-Law and Practice section.

Besides these requirements the compromise agreements contain details of the financial package offered as well as several other terms governing the end of the employment relationship when assessing a compromise agreement.

The financial package typically depends on your length of service, seniority and the generosity of your employer. If you have more than two years service you are entitled to statutory redundancy pay. Thus the financial package must at least cover this and any contractual notice payments.

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<h1>What is a Compromise Agreement?</h1> Author: <a href='http://www.articleseen.com/profile_Stone Joseph.aspx'>Stone Joseph</a> A Comprehensive agreement is a legally binding agreement the termination of your employment. It usually provides a severance payment by your employer in return for which you warrant not to pursue any claim you may have to an employment tribunal. Mainly, the Compromise Agreement will also deal with the notice element in your contract of employment and may provide for a “payment in lieu”.

The employers are now increasingly using compromise agreements as a mechanism for preventing possible future complaints to a tribunal, s especially in redundancy situations.

Compromise agreement are recognised by statute and are the only way a claim can be legally binding without tribunal proceedings having been initiated.

You must have the compromise agreement explained by an independent solicitor before the agreement becomes binding. The solicitor giving the advice must also sign the agreement and certify that the appropriate advice has been given.

After the negotiation of a compromise package on departure of an employee, an agreement is concluded on the employee signing a compromise agreement. It is an agreement that allows “full and final settlement” for some of the claims between the employer and the employee.

One of the main purposes of a compromise agreement is to prevent employees from bringing or pursuing a claim before the Employment Tribunal. The statute requires compromise agreements to meet the condition like the agreement must be in writing and has some features. It must be relate to a particular complaint within their contemplation. The employee must receive independent legal advice. The advisor must have in force a professional indemnity policy. The agreement must identity the adviser. The agreement must state the conditions relating to compromise agreements have been satisfied.

The features are common to all compromise agreements but your compromise agreement should be negotiated and drafted to your circumstances. In case contact is required it can be made at Andre or Ruth at Stone Joseph solicitors (0207 8549098), a specialist boutique employment practice to advise on what are the most relevant and important issues for you.

Why should I Sign a compromise agreement?

A compromise agreement governs the termination of the employment relationship. The main aim of a compromise agreement is that in exchange for a financial package the employee will waive their right to be able to bring certain claims against the employer in an employment tribunal. It is in essence a “full and final settlement” for any potential claims.

There are some of the requirements that each of the compromise agreement must satisfy and these are dealt with in Overview of a Compromise Agreement which can be found in the London Compromise Agreements-Law and Practice section.

Besides these requirements the compromise agreements contain details of the financial package offered as well as several other terms governing the end of the employment relationship when assessing a compromise agreement.

The financial package typically depends on your length of service, seniority and the generosity of your employer. If you have more than two years service you are entitled to statutory redundancy pay. Thus the financial package must at least cover this and any contractual notice payments.
About the Author: London <a rel="nofollow" href="http://www.londoncompromiseagreements.co.uk/">Compromise Agreements</a> is a UK website created by Stone Joseph Solicitors, a specialist employment law firm, to provide advice and analyse the issues involved in assessing <a rel="nofollow" href="http://www.londoncompromiseagreements.co.uk/">compromise agreement</a> and redundancy packages. Article Source: <a href='http://www.articleseen.com/Article_What-is-a-Compromise-Agreement_67386.aspx'> http://www.articleseen.com/Article_What is a Compromise Agreement?_67386.aspx</a>

Article Source : http://www.articleseen.com/Article_What is a Compromise Agreement?_67386.aspx

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London Compromise Agreements is a UK website created by Stone Joseph Solicitors, a specialist employment law firm, to provide advice and analyse the issues involved in assessing compromise agreement and redundancy packages.

Keywords : Compromise agreement, Compromise agreements, London Compromise Agreements,

Category : Business : Business

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