Compromise Agreements Explained.

What happens if I am not happy with the agreement?

There is no legal or other obligation on you to sign a compromise agreement if you are not happy with it. However, just as you need to understand and get advice on what signing means, you should also understand and get advice on what will happen if you do not sign.

At its simplest, refusing to sign means that there is no agreement between you and your employer and both sides are free to pursue the case as they see fit.

In redundancy cases, however, it could mean that your employer would refuse to pay you the full redundancy package and will instead pay the minimum state entitlement. There is almost certainly nothing unlawful in them doing this and you need to consider carefully and get advice on whether it is likely that your complaint to a tribunal or other legal action is likely to compensate you for what you may have lost by refusing to sign the compromise agreement. This is a decision which should never be taken lightly.

Remember, however, that if you are not happy with the compromise agreement you receive, you can seek to negotiate improvements or get the union or your advisers to do so. It is not unusual for changes to be made when concerns are raised, particularly if there is general acceptance that an agreement is the best way ahead.

Once a compromise agreement has been signed by all parties, any agreed compensation will usually be paid in a matter of days or perhaps a week. The payment date will be specified in the agreement.