Should You Accept A Compromise Agreement?

The compromise agreement is a type of legal contract closed between an employer and an employee in order to resolve an issue or dispute at the workplace. This kind of legal form can be used either during the employment period or right after the termination of the employment contract to solve such issues as dismissal, prejudice, discrimination, etc.

Classically initiated by the employer in order to reach closure and avoid any further statutory claims on the part of the employee or former employee, a compromise agreement can be also requested by a staff member for a prejudice s/he may consider he was caused by the company. Usually, the employee’s objective is an ex gratia payment or the imbursement of the any contractual obligations that may result following a redundancy clause. In cases of redundancy, the compensation offered to the former employees range on average between two to six wages.

Through such a settlement contract, typically the employee is asked to waive his statutory claims, as well as any claims for breach of contract normally in exchange of some compensation. However, an employee cannot waive or be asked to waive his rights to purse a claim in personal injury cases and neither his pension rights.

For a compensation agreement to be valid, besides the written consent of the involved parties, the natural person is asked to seek advice from an independent solicitor, who is most often, but not necessarily, the legal representative of his professional indemnity insurance company. The fulfilment of this legal requirement will ensure that the employee is fully aware of the contract he closes and the rights he waves.
Nevertheless, in any situation the counsel and guidance of a specialised, practised, and proficient solicitor is fundamental for ensuring you played your cards right. Especially in serious cases, such as personal injury claims or medical negligence cases, the assistance of such legal representatives will guarantee the fair compensation of the prejudiced party.

As it name suggest, a compromise agreement is all about giving away or letting go something for receiving something else. Under typical redundancy circumstances, closing such an agreement has proved to be largely beneficial. Nonetheless, each situation has its own particularities and each person his own sense of justice. Therefore, you should accept a compromise agreement if you feel like it offers you a fair compensation for the prejudice you were caused and, of course if your legal advisor concurs with your opinion.

By: JacquelineBrewster

Article Directory: http://www.articledashboard.com

The solicitors from goodmans are dedicated to professional excellence in medical negligence and serious personal injury claims.