Why do I need a solicitor?
Because the law says you can’t sign a Compromise Agreement without having taken the advice of a qualified lawyer, or a certified trade union official or advice centre worker. All of these advisers must be covered by indemnity insurance.
What should I expect from my solicitor?
The solicitor will look at the background of the Compromise Agreement given by your employer and advise you whether you are being offered a suitable amount of compensation. They should refer to your contract of employment to calculate the correct notice and see if the compensatory sum covers an appropriate amount. If any bonuses are due, they should look at this and also work out any appropriate redundancy payments. Much of the Compromise Agreement is written in legalistic language and refers to various issues that can look very onerous to those without legal training. It is important that the solicitor fully explains the effect of the Compromise Agreement to you.
How much will it cost me to seek legal advice?
The Compromise Agreement should normally cover the amount that it would cost for a solicitor to sign it off - usually an hour’s advice. But if there are issues still to be determined and the amount offered is inadequate then the solicitor should try not only to increase the compensation, but also your employer’s contribution for the additional legal advice.
Why am I being asked to sign a Compromise Agreement?
When you sign a Compromise Agreement and accept its terms, you lose your right to make a claim against your employer in a court or an employment tribunal. This means you should resolve all issues within the Compromise Agreement, including any owed bonuses and accrued but untaken holiday. The only exception to this is where an employer offers a Compromise Agreement but has misrepresented the facts to you and the circumstances as to why they want you to sign it. For example, they have told you that your job is redundant but it is not.
Can I tell anyone about the Compromise Agreement?
Nearly all Compromise Agreements include a standard confidentiality agreement. Sometimes this only covers the terms of the amount offered in the Agreement. However, in some cases it covers the existence of a Compromise Agreement which means you must not tell anyone that this is the way in which you have agreed to terminate your contract. Usually you can agree exceptions to this rule so it does not apply to immediate family, spouse and professional advisers. Where people are aware that you have a dispute or claim against your employer, it is important to look at what sort of confidentiality agreement has been offered to see if this is appropriate.
Visit our Compromise Agreement advice page for further help.
