Understanding Legal Agreements

Why You MUST Get Specialist Legal Advice Before Accepting Any Agreement

Making use of a legal compromise agreement during a redundancy has been used in severance situations in the past, and the major reason for using one is to clarify exactly what the employee would receive and to impose limitations on pursuing further legal action, as well as in situations where the employer may wish to limit the former employees options to work with competitors.

While many employers are using these agreements with the best of intentions, the fact that they prevent further action being taken makes it possible that other less scrupulous employers could use it to prevent employees from receiving their full entitlement.

A compromise agreement is an agreement that when used correctly prevents employees from taking action against an employer, however to be valid, the agreement must be in writing, it should agree only with the process of termination of employment and you must be given the opportunity to seek independent legal advice before signing the legal document.