COMPROMISE AGREEMENT -
EMPLOYMENT SOLICITORS - EXPERT ADVICE
1. WHY
CHOOSE DOWNIE AND GADBAN
As Compromise
Agreement Solicitors in Hampshire we can deal with your
problem promptly and efficiently.
We service clients in
ALTON, Hampshire, Surrey and beyond and have extensive
experience and expertise in advising on and in dealing with
Compromise Agreements (Severance Agreements/Termination
Agreements) and act for:-
(1) Employers who wish us to prepare a Compromise Agreement and
guide them through the process; and
(2) Employees who need to seek independent advice on a
potential or actual mutually agreed termination of their
employment and severance terms.
We provide an efficient fast and
friendly service, sound advice and often negotiate more
favourable terms involving complex terms and documents.
You will receive
completely independent and confidential advice as well as
prompt action.
2. WHAT IS
A COMPROMISE AGREEMENT
Agreements vary in
complexity and length but all need to contain the basic
terms.
It is a legally
binding agreement/contract between the Employer and Employee
which must comply with the requirements of Section 203 of
the Employment Rights Act 1996. It is necessary for an
Employee to seek
independent legal advice on a Compromise Agreement before
signing it.
3. WHAT IS
THE PURPOSE OF A COMPROMISE AGREEMENT - DO YOU NEED
IT?
Commonly such an
agreement is entered into either because a dispute has
arisen between an Employee and Employer and is settled or a
redundancy situation has arisen or a
reorganisation/restructuring has occurred or is about to
occur. The Employer may raise the issue at an 'off the
record' discussion.
NB: You will
be advised on the options that are open to you
including any severance terms.
As a mutual
termination, a Compromise Agreement is confidential
and is often the most sensible way of giving the Employer
peace of mind and virtual certainty of avoiding an
Employment Tribunal claim or of settling an on-going
Tribunal claim on a final basis in exchange for the Employee
receiving a compensation payment (the first £30,000 is
usually exempt from tax).
4. WHAT
DOES IT COST
· Usually there is
NO COST TO THE EMPLOYEE on a proposed Compromise Agreement since the Employer
will pay the full amount of any legal fees – generally
between £300 - £500 plus VAT, but could be more depending on the complexity
and any negotiations that may be involved. The draft
Agreement will give an indication.
· Any additional fees to be incurred will need
to be agreed with you.
· Employees
who have not yet been offered a draft of a Compromise
Agreement by their Employer or who have not approached their
Employer about a Compromise Agreement can benefit from a
FREE initial 10 minute appointment (Phone us on 01420
82879) for expert advice which can be combined with our
concessionary ½ an hour Fixed Fee (currently at £95
inclusive of VAT) to enable them to obtain advice as to
their legal rights and options.
5. TYPES
OF BUSINESS AND EMPLOYEE AND GEOGRAPHIC AREA
We have advised
Employees employed by: banks, multi-national/national
companies in the manufacturing, software and commercial
sectors, sole traders and partnerships and at all levels
(Board Directors, Company Executives, Professional Persons,
Academics & others).
6. HOW
DOES IT WORK
This will usually
require a face to face meeting with our adviser but may be
preceded by a telephone enquiry regarding specific
arrangements to try and suit the client.
Employer
You decide (with the
benefit of advice) to offer the Employee(s) a Compromise
Agreement, containing the relevant terms (e.g. termination date, Severance
Payment and any restrictive covenants), secure a draft and
pass this to the Employee(s) in duplicate and request the
Employee(s) to seek the advice of (usually) an Employment
solicitor before signing.
Employee
You take the proposed
Compromise Agreement to us, to go through the terms in the
document (e.g. payment, reference, restrictive covenants,
legal fees etc.) and we advise you on it and you will either
sign it or before doing so negotiate any changes.
NB:
- It is helpful if the client can forward a copy of the
draft Agreement and any Contract of Employment before the appointment with us.
NB: Once
signed by both parties the Agreement is legally binding and
forms the legal basis of an Employment Termination.
NB:
Documents that we will need to see - We will need to check
your identity and home address/place of residence - this
means bringing:
(a) Your
passport or driving licence
&
(b) A recent
utility bill or bank statement
APPOINTMENTS
How soon can we see you and deal with your matter?
Frequently Employees
need to seek advice within a day or two of receiving the
draft Agreement from the Employer.
In the vast majority
of instances we can see the client (Employer or Employee
alike) at their early convenience and at short notice.
Telephone us today on 01420 82879 or Fax 01420 87572
(We can also be contacted by email via the "Contact Us" page)
Solicitor/Partner Year
Qualified
Richard W Pigula 1980
