Compromise Agreement – what to look for
2 Min Read
Sometimes employees are expecting a compromise agreement and sometimes they’re not. Employers will generally contribute to the employee’s legal fees, as it is one of the statutory conditions for Compromise Agreements that the employee has received legal advice.
So what should you look out for in a Compromise Agreement?
- Understand the terms and conditions: your legal adviser can help ensure that you fully comprehend the agreement’s clauses, including financial compensation, confidentiality, and post-employment restrictions
- Ensure fairness: help you to evaluate whether the terms being offered are fair and reasonable, considering factors like your role, tenure, and the circumstances of the agreement
- Maximize potential benefits: help identify opportunities to negotiate better terms, such as enhanced severance pay, extended benefits, or additional support like career counselling
- Clarifying tax implications: Some payments within a Compromise Agreement may have specific tax considerations. Legal guidance should be given to avoid unexpected tax liabilities
- Protecting future rights: ensuring that you don’t unintentionally waive crucial rights, like claims for unfair dismissal, discrimination, or breach of contract
- Navigate complex language: Compromise Agreements often include legal jargon that can be difficult to interpret. With our help you can avoid potential misunderstandings
Get in touch if you would like help with your Compromise Agreement.