Compromise Agreement

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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.

Key clauses in this agreement include:

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.