What are compromise agreements ?
A ‘compromise agreement’ is a legally
binding agreement to accept compensation
from an employer instead of pursuing
your case to an employment tribunal.
Compromise agreements were originally
designed for resolving disputes between
employers and employees and usually
involved the withdrawal of a tribunal
complaint in return for a compensation
payment.
However, employers are now increasingly
using compromise agreements as a
mechanism for preventing possible future
complaints to tribunal in redundancy
situations.
