Compromise Agreements


A compromise agreement is a legally binding agreement involving an offer from an employer to an employee to agree to mutually terminate the current employment contract. The employer offers financial compensation to the employee and in return, the employee gives up all employment rights.


As compromise agreements are legal documents, they are usually drafted by experienced solicitors. The compromise agreement should set out all the terms of the settlement between the two parties – this will include things like:

    • Details of compensation package.
    • Relevant tax information with regards to payments.
    • Dates by which payments must be made.
    • Issues of confidentiality.
    • Any restrictions on future employment.
    • References provided by the employer.

In order for the compromise agreement to be valid, it is important for employees to receive legal advice from solicitors. Your adviser must also sign the compromise agreement in order to show legal advice has been given. At Savas and Savage, our specialist employment lawyers have many years of experience and can advise you throughout the whole process. If you require further information with regards to our compromise agreement service, feel free to call us on 0800 328 3823.