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A compromise agreement is a legally binding arrangement that an employer may ask an employee to enter into around the time of a potential termination of employment. It means that once concluded, an employee cannot pursue a claim against the employer for any issues arising out of the termination of employment.
There is usually a financial incentive offered in excess of a person’s statutory entitlement to encourage the employee to agree to sign the document.
If an agreement cannot be reached, it may still be open to the employee to take their claim to an employment tribunal.
To find out more, please contact our Employment Law team today.Back