filling out employment agreement

What is a compromise agreement?

Sometimes the relationship between an employer and employee can get so bad that there is no solution other than for them to go their separate ways. The employer has no legal grounds that would justify the sacking of the employee and the employee feels strongly that, through no fault of their own, the issue with the employer cannot be resolved but they don’t want to suffer the financial difficulties of suddenly losing their job.

In these scenarios, a compromise agreement between the two parties is often the best solution to an unhealthy situation. Essentially, the compromise agreement brings the employment to an end based on a signed agreement by both parties.

The compromise agreement is a legally binding document that usually offers the employee compensation for agreeing to a set of conditions. These conditions need to be agreed by both the employer and employee, signed off, and assurances given that this will draw an end to the matter.

Compromise agreements make the process of ending somebody’s employment as smooth and swift as possible, ensuring that the employer will not face any legal action in the future. From the employee’s perspective, it gives them a way out of the situation with an agreed financial package that compensates them for the loss of their employment.

Compromise agreements can sometimes be difficult to negotiate and reaching a satisfactory conclusion for all parties can be problematical. This is when it pays to engage the services of a legal practice such as Mark Reynolds to support you throughout the process.

If you’re an employee who is in the throes of trying to reach a compromise agreement with your employer and you need advice and support then please get in touch and tell us about your situation. We would be happy to help.