Basics and Prerequisites for Drafting a Compromise Agreement
Basics and Prerequisites for Drafting a Compromise Agreement
A compromise agreement if drafted clearly will save the employer and employee form any problems they might face. When a compromise agreement is in place there will be no need of a legal suit, which is going to be very costly and time consuming. But, both the parties should realize that it is not that easy to draft a compromise agreement. To develop a proper agreement, one should hire the proper solicitors, which are experienced in this kind of work.
Before drafting an agreement both the employer and the employee should be taught about the basic prerequisites. By knowing this it will make the job more easier.
The basic information that needed to draft the agreement is as follows:
1. The name of the employer including the address of the registered office and the registration number.
2. The date when the employment is said to be terminated
3. Employees job title, the date in which the employee joined the organization and the age of the employee.
4. The draft should also consider the performance of the employee, any promotions given and the experience of the employee in the organization.
The current annual salary is the final statement that need take into account while drafting the compromise agreement. Also the conditions laid down for the taking any bonuses should also be mentioned in the agreement. All this can be entitled only if this can be calculated for the last three years.
While terminating the employment in UK, employers should adhere to the clauses mentioned in the compromise agreement. Also while drafting the agreement it is advisable to cover each and every aspect of the clauses that mentioned the UK employment law. The same way the employee can also force the compromise agreement only after spending certain years in the organization. The above are the required and basic things that needed to taken care of when drafting a compromise agreement.