More info on Compromise agreements

ferry

I'm due to be made redundant soon and part of the package involves signing a Compromise Agreement.

Can anyone please point me in the direction-possibly a good link- to where I can get good in depth information on these as I want to make sure I leave with everything I am owed and of course legally entitled to.

Many thanks
F.

dmg24

Google is your friend.

ClaireS

Usually with compromise agreements you will need to take it to a solicitor for them to look over. Your company will normally pay the solicitors fees. The solicitor can then advise you on the legalities. Most compo agreements are pretty standard so you just need to ensure the monies you are getting are correct. If you are getting an enhanced redundancy then you are within your rights to ask your company how they calculate the fina figure.

getmore4less

With a CA you want more than you are entitled to.

You have to ask why a normal enhanced redundancy package was not sufficient, since you sign away rights.

Pete111

Claire S is correct - do not sign anything until you have put it in front of a lawyer. It is usual practice that the company pays (up to a maximum) for you to do this and a CA should not be signed without a lawyer also doing this to prove you have received appropriate advice - make sure you find your own lawyer also.

As above also, you are signing away a fair few rights in this so make sure you get more than you would have otherwise done otherwise you are signing these away for free

Things you should push for in the CA include:

1)An ex gratia termination/redundancy payment
2)Payment in leiu of notice
3)Holidays accrued but untaken to be paid up to the point your notice was due to end - not date of termination
4)Benefits to continue or be paid out for up too the point your notice was due to end
5)A consideration for a % of any bonus this year
6)Lawyers fees (as above)
7)An agreed reference

P

Uncertain

getmore4less wrote: »

With a CA you want more than you are entitled to.

You have to ask why a normal enhanced redundancy package was not sufficient, since you sign away rights.

Or less than you are entitled to (!!) in some circumstances if it settles or prevents a potentially valid claim.

There can be all kinds of reason why CAs are offered. In some cases an employer is simply happy to pay a little extra for the certainty of avoiding future claims, however unlikely they may be. They will know that almost any claim will cost them money even if the ultimately win.

You can also be advised by a specially trained trade union official but I would strongly suggest you go to see a local solicitor of your choice face to face.

Pete lists the items normally included however you can of course agree pretty much what you like.

There are one or two types of claims that cannot be excluded by a CA but your solicitor will advise if this is relevant.

Pee

They will pay for you to seek legal advice and their limit is usually more than enough for two hours with a good employment solicitor.

If you think you have any right to make any sort of claim, make a note of the incidents so that you can seek advise.

ferry

Manythanks to all for the usual excellent advice.

F

NJ2010

Hi

I just wondered... do you have to seek legal advice before saying you want your employer to draw up a compromise agreement?

Thanks

Pete111

You don't ask your employer to draw one up. They will come to you with one as primarily, it is they who are seeking the protection it provides.

If they agree (in writing..) various payments above the statutory etc etc and are happy to pay these without you signing a CA, then you should avoid raising the issue. That way you retain your employment rights.

WestonDave

I think in effect a CA is pretty worthless unless you have had independant legal advice on it - this is why in most instances part of the package is for the employer to pay your legal costs for getting such advice (often limited to a certain sum).

The fundamental point of a CA is that you sign away any rights you have to claim against the employer (for unfair dismissal etc) in return for extra termination benefits over and above that which you would normally have recieved - there has to be some benefit to you otherwise again it would be effectively invalid. So for example there is no point signing a CA where you are only getting statutory minimum redundancy (although if you are getting that when you probably ought to have been sacked it might be worth it!).

If you are signing a CA you therefore need legal advice to ensure that not only are you getting everything you are entitled to, but also something else on top. You are of course entitled to your basic legal rights without signing anything.