Consensus Employment Law

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Compromise Agreements

A compromise agreement is a legally binding document under which an employee agrees not to make a claim against their employer.  In return, it is usual for the employer to pay a sum of money to the employee, which is tax free up to £30,000.

A compromise agreement draws a line under any existing or pending employment law issues you have with your employer, and prevents you from making a claim against them at a later date.

The agreement must be in writing and must relate to a particular complaint you have against your employer.  Before signing it, you must have taken legal advice and it is normal practice for employers to pay for this. 

We will explain the terms of the compromise agreement to you and help negotiate the best possible deal for you.

Contact us if you have been offered a compromise agreement or if you would like further information in relation to compromise agreements.

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