More info on Compromise agreements

NJ2010

Thanks very much to both of you... Just wanted to see if I have to speak to a solicitor before I agree that I will pursue the route of a compromise agreement as discussed in prior meetings. I have been given a basic understanding of what this agreement will include but I just wondered if I have to advise a solicitor before I confirm with my employer that I agree to go with that option. Or should I simply wait until they provide me with it in writing then approach the legal guys for them to check and so whatever it is they need to do, prior to my signing and agreeing.

Pete111

NJ2010 wrote: »

Thanks very much to both of you... Just wanted to see if I have to speak to a solicitor before I agree that I will pursue the route of a compromise agreement as discussed in prior meetings. I have been given a basic understanding of what this agreement will include but I just wondered if I have to advise a solicitor before I confirm with my employer that I agree to go with that option. Or should I simply wait until they provide me with it in writing then approach the legal guys for them to check and so whatever it is they need to do, prior to my signing and agreeing.

Weston Dave is correct - you must get legal advice (and your employer ought to pay for this) however, there is no real need to speak to a solicitor beforehand as they won't have anything to review re the terms offered

Unless you are contemplating making a process based or discrimination tribunal claim at this stage, I would wait until you get the 1st draft CA from the company before seeing a solicitor.

NJ2010

Perfect Pete111. Thanks very much!

kar999

ALWAYS get legal advice, which your employer must pay for up to a limit (approx £500). They are only asking you to sign one to stop you taking any future action of some sort so you will be signing away many of your rights. It has to therfore ONLY be in your personal and financial interests to sign your future options away.

Mine was to prevent me from taking them to a tribrunal for constructive dismissal (because they knew they would probably lose) and so my solicitor was happy for me to sign it as the agreement entitled me to a more than satisfactory settlement fee.

They are also oblidged to include a good reference for you as well.

DavidP24

Do not sign anything, do not be forced into anything. Find a lawyer and ask them to pay for it. There may be nothing bad in it but don't agree to anything unless you benefit from it.

Uncertain

kar999 wrote: »

ALWAYS get legal advice, which your employer must pay for up to a limit (approx £500). They are only asking you to sign one to stop you taking any future action of some sort so you will be signing away many of your rights. It has to therfore ONLY be in your personal and financial interests to sign your future options away.

Mine was to prevent me from taking them to a tribrunal for constructive dismissal (because they knew they would probably lose) and so my solicitor was happy for me to sign it as the agreement entitled me to a more than satisfactory settlement fee.

They are also oblidged to include a good reference for you as well.

It is normal for the employer to pay for / towards your legal advice but this is not an absolute requirement. Also beware of this being conditional on a CA being signed!

Equally, while an agreed reference is frequently part of a CA it is again not a hard and fast requirement. You can of course agree more or less anything providing both parties are happy to sign.

getmore4less

My understanding is that even if you sign it is not a compromise agreement untill you have had advice from an independant source that is qualified to do so.

A bit of reading, they must also state what it is you are compromising and if they are not offering anything special you can use them against the employer to enhance your case at an ET.

Uncertain

getmore4less wrote: »

My understanding is that even if you sign it is not a compromise agreement untill you have had advice from an independant source that is qualified to do so.

This is true (ish) !

A compromise agreement is a defined legal "thing" and, as you say, may not be binding unless you have received independent advice from a qualified and insured person.

However a simple agreement can be valid is its own way. It may not give the firm protection against certain other claims but it can still settle some issues.

Take care (and advice) before signing anything.

good_guy_2

Being in the HR profession I would question any company who offers a CA to someone they are making redundant. If you follow a fair & reasonable process there is absolutely no need for one! I would therefore advise you that even at this stage you understand how you have been compromised (If at all!) Citizens Advice would certainly have an opinion at this stage and are free! A union may also be willing to help you (ALthough may want you to join!).

Uncertain

good_guy wrote: »

Being in the HR profession I would question any company who offers a CA to someone they are making redundant. If you follow a fair & reasonable process there is absolutely no need for one!

I think many just regard it as belt and braces for a modest cost. It takes away (virtually) any possibility of a claim which, even if totally unfounded, will take up considerable resources. A CA will normally have a confidentiality clause which may be important in some situations. It is also normal to insist that the employee deletes / destroys any business information he may hold. If this is important it may be worth a few month's salary - or more!