Drafting compromise agreements for employers

There are times when for whatever reason the relationship between employer and employee has broken down to the point where it could be better all round if the employee was to leave the company.

There are obviously strict procedures to be followed with regards to an employee’s dismissal; however in some circumstances the employer may wish to have the situation resolved more quickly than those procedures would otherwise permit.

In this situation, and also where there is a real prospect that the dismissal could be open to challenge as being unfair, a compromise with the employee could instead be reached in the form of a compromise agreement.

The compromise agreement usually provides the employee with a settlement amount in return for which he or she must forgo the option of taking the employer to an Employment Tribunal or Court.

This achieves a successful result for both the employee and the employer and provides the employer with the reassurance that the employee is barred from bringing an unfair dismissal claim, or another type of claim, after they have left the company. It also often provides the employer with a faster route to dismissal as the compromise agreement often replaces what could otherwise be lengthy dismissal procedures. 

Halborg & Co are extremely experienced in drafting compromise agreements and will ensure that fully up-to-date provisions and detail are effective to ensure the best result and protection for our employer clients.

If you have a situation with an employee where a compromise agreement could be the mutually beneficial solution, please contact us.