Compromise agreements
(VI). Compromise agreements
If, on the termination of the employee's
employment, or in settlement of potential claims in other
circumstances, the employer pays more than the strict legal
entitlement; the employer often wants to make sure that the
employee cannot, after receiving the extra payment, still bring
claims against the employer, whether statutory or otherwise. The
employer will, therefore, require the employee to sign an
agreement.
An agreement to waive statutory employment rights is not valid
unless it is made through either ACAS or what is known as a
Compromise Agreement. This is an agreement which meets certain
statutory requirements, one of which is that the person signing
away their rights has received independent legal advice on the
effect of what they are agreeing to. This advice can be given by a
Solicitor or a Union Official trained and certified specifically
for this purpose. The employer will pay for the employee to
receive independent legal advice to make sure that the agreement is
valid and enforceable against the employee.
Although the employer may suggest a firm of Solicitors for this
purpose, the member can instruct any Solicitor of his/her choice.
If Members need advice on a Compromise Agreement, any request
should be made in the first instance to the Union's Legal
Services Department. The Union's Legal Services Department may
refer such cases to their panel of specialist employment solicitors
to give the independent legal advice to the member at no cost to
the member or to the Union. By using a panel of solicitors, the
Union's members can be sure of receiving advice that is not
only independent and from someone who specialises in employment
law, but also from someone who has experience of the arrangements
applicable in the postal and telecoms industry.
