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 effects of the proposed agreement. There's a very sound reason for this.
Completing a Compromise Agreement should be simple, but there are traps for the unwary. Slip up and the Agreement could be invalid, often because it doesn't identify a specific dispute that is being compromised or (on the other hand) doesn?t cover all potential complaints.
From the employer's point of view, care must be taken to specify all of the possible claims that an employee is being asked to compromise. These will include claims under contract or under statute law. If the Compromise Agreement does not make this very clear it will not be in full and final settlement of all such claims. Many new possible claims have been added over the last ten years and the Agreement has to be up to date.
For the benefit of both employer and employee the Compromise Agreement has to deal with issues such as confidentiality and other business details, such the return of a company car, keys, laptops and passwords. Expense claims and bonuses may also have to be agreed.
For further information call us now on 020 7274 0110, or write to us at guy.thompson@guyt.co.uk