The laws around Unfair Dismissal are probably the most important aspects of UK employment law.

Although all sorts of employment issues can be resolved by these agreements, the most common use of a compromise agreement is in connection with Unfair Dismissal claims.

What is Unfair about "Unfair Dismissal"?

One of the rights granted to employees by UK employment  law is the right not to be unfairly dismissed.

What this normally means is that once an employee has been in a job for a year the employer can only dismiss him for one of a few specific reasons (e.g. bad performance or redundancy).

Even if one of these reasons does apply, the procedure must still be handled correctly.

What is, or is not, an "unfair dismissal" depends on compliance with the law.

So what seems a harsh dismissal could be "fair" if done correctly, and what seems perfectly reasonable will be "unfair" if the correct procedures were not followed (it would be "procedurally unfair").

Compromise Agreements and Unfair Dismissal

Compromise Agreements can benefit both employers and employees.

Even if responsible employers do their best to keep to the law, they can make mistakes with disciplinary of consultation procedures or the ever-changing employment protection and anti-discrimination laws.

Signing a compromise agreement is obviously an advantage for the employer, as it is security that an issue that was believed settled does not appear unexpectedly later.

The advantage for the employee is that issues are sorted out fast, usually with better terms, and the whole deal is reviewed by an independent lawyer, normally at no cost to the employee.

Independent Advisers and Unfair Dismissal Cases

The independent adviser has a vital role to play in this. He or she will normally be be an independent solicitor, and for the compromise agreement to be a valid must always be approved by someone  who is independent of the employer's disciplinary or redundancy process, and is insured against making any mistakes in the advice.

It is is one of the very few ways employers and employees can settle a dispute relating to an employment contract, once and for all.

Guy Thompson & Co is an established law firm working for clients based in the City of London.

All Compromise Agreements are handled personally by Guy Thompson, or one of a select group of consultants who have worked with financial institutions and City companies and staff for many years. You can arrange a meeting at their City meeting rooms, or wherever is convenient to you.

We can provide quick and objective advice to both employer and employee.

For further information call us now on 020 7274 6874 or write to us at guy.thompson@guyt.co.uk