Compromise agreements

Employment law- Compromise agreements

Compromise agreements (UK wide)


Please note that a “Compromise Agreement” has been renamed, and known as a “Settlement Agreement” for many years now. We have included a page headed compromise agreements only for those that are somewhat behind the times. For greater detail and information about this area of law, please go straight to our settlement agreements page

A compromise agreement, now known as a “settlement agreement“, is a legally binding negotiated agreement between you and your employer. It usually provides for a severance payment by your employer, in return for which you agree not to pursue any claim you may have to an employment tribunal. There are many other terms you will find in a compromise agreement and because of its full and final nature, you need to endure that your interests are properly protected when the agreement is being negotiated. There is no going back otherwise.

You must have the compromise agreement explained by an independent solicitor before the agreement becomes binding. The solicitor giving the advice must also sign the agreement and certify that the appropriate advice has been given.

Philip Landau and his team are very experienced at advising in relation to compromise agreements, having favourably negotiated with thouands of employers throughout the UK. This includes a vast number of investment and retail banks, and other City financial institutions.

We are able to turn our advice around on your compromise agreement quickly and remotely- wherever you are based. This is usually achieved by direct e-mail and telephone contact with you, the HR personnel at your employer, or your employer’s legal advisers. We are, of course, always happy to meet with you at our offices if you prefer.

Employers are now being increasingly encouraged by the government to use compromise agreements as a mechanism for preventing possible future complaints to a tribunal. This often applies to redundancy situations, but can be for any reason to settle an employment dispute – such as where the employer has not followed a fair dismissal procedure, or where there has simply been a breakdown in the relationship with an employee.

Legal costs

Your employer will normally contribute towards the costs of your legal advisers in connection with the advice you receive.

We offer a costs guarantee that you will not be charged more than what your employer is prepared to contribute by way of costs, in our advising you on the clauses in your compromise agreement. If you wish us to negotiate an increase in the settlement sum offered in your compromise agreement or make a claim against your employer, we can offer a no win- no fee option.