FAQ - City Compromise Agreements from Guy Thompson & Co - resolving employment disputes in the City of London

Q. Do we need to use a solicitor for a Compromise Agreement?  It seems like an unnecessary expense.

The first thing is to say is that the employee must have received advice from an independent legally qualified person (such as a solicitor) as to the "terms and effect" of the proposed agreement.  There's a very sound reason for this.

Q.  OK, so what?s really the advantage of a Compromise Agreement?  What about an Employment Tribunal - won't that settle a dispute?

Well, as mentioned elsewhere, they are one of the few (and certainly the quickest and cheapest) ways in which employees and employers can settle a dispute relating to an employment contract finally and definitively.

Q:  What do I need to look for in a Compromise Agreement?

Here is a crash course on the essentials to look out for:

1. The agreement must be in writing

Q:  I'm facing redundancy from my place of work, a well-known financial City institution, and they are suggesting a Compromise Agreement to me.  Why would anyone have to sign a Compromise Agreement if they were redundant?

Redundancy is a common theme in Compromise Agreements, especially in the City of London. This is perhaps surprising, because if someone is redundant that is one of the few reasons why an employer can dismiss an employee who has worked for him for more than a year.