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Compromise Agreements for Employers

Compromise Agreements for Employers

Compromise Agreements for Employers

You haven't slept well; your neck is stiff and you have a tense sensation in the stomach. Diagnosis: one of your employees is leaving the job, things have gone a bit bitter and you feel anxious about the idea of them taking you to an Employment Tribunal. Well, here you have good news: a compromise agreement can settle things amicably for both of you. Read on...A compromise agreement is one made without involving ACAS or a tribunal. Indeed, this is often to stop a case getting as far as a tribunal. But it has to meet all the legal requirements for it to be legally valid. This is a good initial guide to give you an idea:- The agreement must be in writing. There is a very specific form of words that should be used in drafting a compromise agreement, that's why a skilled adviser will be reassuring.- It's important that the agreement covers everything that has been complained about. Take care though, having a loose catch-all phrase won't be enough - make sure all the employee's complaints - or might complain about - is covered in the compromise agreement.- An employee signing a compromise agreement is entitled to independent professional advice from a solicitor. Normally you'll have to pay for this as an employer. But, why? Well, failure to do so could be interpreted as trying to prevent an employee from seeking independent advice... and it will help you. However, it's reassuring that this doesn't usually cost more than
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