Life is a compromise

Nov. 19, 2008 - PRLog -- Relationships fail, sadly this is a fact of life. However when relationships between the employer and the employee break down the dispute can end in a costly and time consuming Employment Tribunal. As the compensation limit for unfair dismissal is now well in excess of £50,000, it is the employer who usually stands to lose the most by allowing the matter to escalate this far, but the employee can be left in limbo while the matter is being resolved.

An Employment Tribunal can take months to resolve and be costly for both the employer and the employee however, there is a solution that will save time and money for both sides – a Compromise Agreement.

Says Phillip Harding, Partner at Tallents,

“Employers and employees who would prefer to resolve a matter without proceeding to a Tribunal but recognise that the employment relationship has come or is coming to an end can enter into a Compromise Agreement whereby the employee receives an agreed sum of money, sometimes tax free, in return for agreeing not to bring a claim against the employer.”

At a time when the employee is probably under extreme stress, may be out of work and unable to afford a solicitor to represent them and the employer wants to bring the matter to a speedy close, this solution may be the best option for everyone.

Phillip continues,

“However it is not just as simple as presenting an employee with a Compromise Agreement as this could be construed as Constructive Dismissal. Employers should have their agreements drawn up by an employment lawyer as they must contain certain legalities.”

A Compromise Agreement must be in writing, and must specify the particular complaint to which the employee is agreeing to compromise. The employee must have received independent advice from a person qualified and insured to give that advice, usually their own appointed solicitor,  who can explain the terms and effect of the proposed agreement. The agreement must identify who the adviser is and it is usual for the employer to pay some or all of the costs involved for the employee in taking this advice. Finally the agreement must state that the conditions regulating compromise agreements are satisfied.

Phillip concludes,
“Compromise Agreements can be an effective way of resolving a variety of employment disputes and allow both parties to avoid expensive and lengthy legal proceedings. Our employment solicitors at Tallents are happy to speak to both employers and employees about these agreements.”

For more information, contact Tallents on 01636 671881


Tallents Solicitors, 3 Middlegate, Newark
Tel: 01636 671881

www.tallents.co.uk

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ABOUT TALLENTS

Established in 1774 and with offices in Newark, Mansfield and Southwell, Tallents Solicitors services the legal needs of private individuals, company and commercial clients and farmers in North Nottinghamshire and Lincolnshire.

We still offer a personal service to our clients and our size and structure ensures that partners are never remote from our clients. We provide a full range of legal services and our expertise covers all areas of law including:

Agricultural law, criminal law, commercial and domestic property transactions, inheritance tax planning, trust and estate administration, wills and probate, commercial and general litigation, employment law, company and commercial law, intellectual property, matrimonial and family law, personal injury claims and children issues.