Compromise Agreements
Compromise Agreements are often one of the most cost efficient ways to terminate an employee’s employment. The main benefit of a compromise agreement is that as a business you will have ended the employees employment without the risk of a tribunal claim being issued.
There are many different circumstances in which Compromise Agreements can be used and they should be drafted so that they are tailored to your business and the particular circumstances that have arisen; generic compromise agreements should be avoided in most circumstances. Any Compromise Agreement drafted by BRM will ensure that you are fully compliant with the latest legislation and PAYE tax provisions, as well as being tailored to the circumstances that have arisen.
Here are some examples of when a Compromise Agreement can be used:
- Redundancy
- Problem employee/ disciplinary process ongoing
- Long term absence/ Short term persistent absence
- You have received an Employment Tribunal claim from a former employee
- One of your director’s has resigned or been removed from office
- To avoid redundancies or finalise a voluntary redundancy
- Terminating a contract of employment before the end of the contractual notice period
- Termination of an employees employment by any reason
If you instruct our Employment Team to prepare a Compromise Agreement for your business we will also deal with any queries you receive from your former employee or their solicitor on your behalf.
Please call our employment solicitor, Amy Hallam, for any further assistance on 01246 564012. Alternatively, you can email your enquiry using our online enquiry form.
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