If you are in the process of leaving your job, you may have heard the word Settlement Agreement or Compromise Agreement.

What is a Settlement/Compromise Agreement?

Settlement Agreements and Compromise Agreements are in essence the same thing, Settlement Agreement being the modern name given to an agreement which outlines the terms and conditions of your/your employees exit from the business.

From both perspectives, it’s important that the agreement covers all of the bases to make sure that both parties have a clean break.

One top tip, is that the employee must be given the opportunity to seek independent legal advice on the terms of the agreement. If the employee doesn’t take independent advice, the agreement is unenforceable.

With extensive experience in drafting and advising on Settlement Agreements please do not hesitate to contact one of Poole Alcock’s Employment Law specialists on 01270 625478.