Compromise agreement
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In the
Except when
In practice, a compromise agreement will also contain a waiver of any claim for breach of contract as well as statutory claims, though such a waiver does not need to satisfy the same requirements in order to be valid, as a claim for breach of contract is a common-law claim.
Each agreement should be tailored to meet the facts and circumstances of the case. It is therefore difficult to adopt a one size fits all approach to drafting of a compromise agreement, although this approach might be used if appropriate in more generic cases. The detail and existence of a compromise agreement should remain confidential from third parties.
The advantage for the employer is that they are able to draw a line under an employee's departure or complaint and are protected from future claims. The advantage for the employee is the consideration, such as a financial sum, received in return is provided for by a legally-binding contract. In addition to confidentiality clauses, a Compromise Agreement may also include an agreed reference. A breach of the compromise agreement and any financial loss that breach may incur for the other party, can result in legal action in a court of law.
In January 2013, the UK Government proposed a number of changes. These included renaming compromise agreements as "settlement agreements".
See also
References
- ^ Glossary Definition of Compromise Agreement Archived 2013-02-18 at the Wayback Machine Legal Glossary
- ^ Landau, Philip (23 March 2011). "What is a compromise agreement?". The Guardian. London. Retrieved 5 June 2012.
- CIPD. March 2011. Retrieved 5 June 2012.
- ^ "What is a compromise agreement?". UK: compromiseagreements.co.uk. Archived from the original on 3 May 2012. Retrieved 5 June 2012.
- ^ "The Enforcement of Acas Settlements". ACAS. Retrieved 15 January 2013.
- ^ What is Unfair Dismissal