Compromise Agreements

When a working relationship comes to an end in perhaps less than ideal circumstances, it can be advantageous to both employer and employee to conclude the matter by way of a compromise agreement.

This is a legally binding agreement under which the employee agrees not to take action against the employer in consideration of a monetary payment.

It is beneficial to the employer as it can save considerable management time and expense in subsequently contesting the claim.

It is also advantageous to the employee because the payment can frequently be made tax efficiently.

For such an agreement to be enforceable, the employee must seek independent legal advice, and, to facilitate this, it is customary for the employer to make a contribution towards any costs incurred.

We are able to advise employers on the merits and quantum of settlement offers as well as draft the necessary Compromise Agreement.

We are authorised to conclude agreements on behalf of the employee, including advising on the level of compensation offered.

Stephen Gallico Solicitors is authorised and regulated by the Solicitors Regulation Authority (Registration number: 386696).
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