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  • Writer's pictureSundeep Bhatia

Compromise Agreements

If your employer decides to make you redundant or to dismiss you then he or she may provide you with a sum of money in return for signing a document called a compromise agreement. The employer does this in order to ensure that you will not take legal action against them. In effect the signing of the agreement acts like a pair of golden handcuffs. By signing the agreement and by accepting the sum of money quoted in the agreement you are giving up your right to take any kind of legal action against your employer with the exception of matters relating to personal injury arising out of your employment and matters relating to pension contributions. The Employer will also agree to pay a contribution towards the cost of an independent solicitor advising you as to the consequences of signing such an agreement. This is not an act of charity on the part of your employer.The compromise agreement will not be valid unless you obtain such advise and unless the solicitor signs a certificate confirming that he or she is a solicitor entitled to practice and that he or she has professional insurance so that you can take action against him or her in the event that you are given negligent advice. Until such time as the agreement is signed by both your employer and yourself it is what is known as a without prejudice agreement which means that it cannot be quoted in court proceedings. A good solicitor,as well as advising you regarding the consequences of signing such an agreement,can also advise whether it is financially worthwhile to give up your legal rights or whether ,as is sometimes the case,you are being given nothing more than what you would still receive if you did not sign the agreement because of your employment contract or due to the law regarding redundancy payments . Sundeep Bhatia Beaumonde Law Practice Evans House 107 Marsh Road Pinner Middlesex HA5 5PA 02084296731/33 07803727534

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