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Compromise Agreement


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sample compromise agreement - copy-protected first part of document only
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This Compromise Agreement is to agree terms between an employer and an employee or recent ex-employee to prevent a claim proceeding to an employment tribunal hearing. The agreement complies with the legal requirements for an employee to have independent legal advice regarding the details of their compromise agreement.

The agreement is clearly marked "without prejudice" and "subject to contract" to prevent an employee subsequently using evidence of an offer at an employment tribunal or court, should an agreement not be reached between the employer and them.

Clauses in this agreement:

  • Date of termination.
  • Pay and expenses owed to the employee.
  • Compensation agreed between employer and employee.
  • Confirmation that employee has received independent legal advice.
  • Whether employer will make a contribution to employee's legal costs.
  • Duty on employee to return all organisation property.
  • Post-termination duties imposed on employee, including confidentiality and non-competition.

  • Reasons to buy:
    A detailed Compromise Agreement will cover all the points of a proposed settlement between an employer and an employee (or ex-employee). For the employee it is an opportunity to seek outside legal advice. For the employer it is a very cost-effective way to negotiate a settlement and avoid the time, expense and possible negative publicity of an employment tribunal hearing.

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    Document format
    Microsoft Word

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