Compromise Agreements Explained

GETTING ADVICE

Compromise agreements can be written in very legalistic language and can refer to sections of Acts and Regulations which you may never have heard of. Because of this and because it is important that you understand the effect of the agreement, it is a legal requirement that you get professional advice on what the agreement means. It is also a legal requirement that your adviser signs the agreement to confirm that advice has been given.

According to the Employment Rights (Dispute Resolution) Act 1998, that advice can only be given by a qualified lawyer, a qualified trade union official, or a qualified advice centre worker, all of whom must be covered by an appropriate certificate of indemnity insurance. (Employers will often offer an extra payment to allow you to pay for advice).

Once you are clear as to the effect of the terms of the compromise agreement and if you accept those terms, you and your adviser should sign and return it to the employer who will also sign.

You should be clear that you will not be able to pursue your case further once you have signed a compromise agreement.

 


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