Compromise Agreements
A compromise agreement is only binding is the employee has received independent legal advice on its terms. There is no obligation in employment law to contribute towards the cost of this advice. You may be concerned that when the employee goes to a solicitor they will expect a bigger payout or become more litigious. This can happen but if you have had expert employment law advice from the outset, you should have little or nothing to worry about.
In recent years most employers have offered a contribution as part of the compromise agreement. The usual amount can range from £200+VAT to £500+VAT, depending on the seniority of the employee. You may be asked for a further contribution if negotiations are complex and lengthy. Most employers make the contribution simply to ensure the employee agrees to the compromise agreement.
If you are in a difficult scenario and unsure whether a compromise agreement is the solution then call Andrej or Ruth (or e-mail us) for fast practical advice. If we can't help you then we won't charge you.