Comments on: Compromise Agreements for Employees: Why and How

By: Law Chat

Law Chat — Fri, 19 Dec 2008 15:47:30 +0000

Andrew, thanks for your question: the general position is that so long as a compromise agreement complies with the relevant proceedings under s203(3) Employment Rights Act 1996 and similar discrimination provisions it is is legally binding. The fact that the agreement may make provision for repayment of it should the employee commence proceedings does not effect this. The only point to be aware of is that the agreement will only compromise those claims which are identified under the agreement.

By: andrew vickers

andrew vickers — Mon, 15 Dec 2008 21:29:46 +0000

I thought that technically, a claim (civil or ET) could still be pursued but the employee would be in breach of an agreement and would have to return the money recieved for signing the agreement. In other words, the CA is not binding.

By: Law Chat

Law Chat — Mon, 15 Dec 2008 16:57:13 +0000

Russell, I agree with the £250 + VAT. Winston Solicitors would charge more if (for example) there is renegotiation or a particularly complex agreement.

By: Russell Jones

Russell Jones — Mon, 15 Dec 2008 15:21:07 +0000

And so will most, if not all, solicitors, including myself. There is no prescribed amount in a compromise agreement but the ‘industry standard’ seems to be £250 plus VAT for a simple agreement and could rise from that dependant upon the complexity of agreement reached. The important thing to do is receive independent advice from a qualified lawyer who is willing to discuss matters fully and competent on the law.

By: Claire Palmer

Claire Palmer — Mon, 15 Dec 2008 12:58:24 +0000

You can also now go directly to a barrister on employment work including compromise agreements, and they will do it for the fixed fee that is allowed in the compromise agreement for legal fees.