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Compromise Agreement

A Compromise To Be Made

It is a bitter truth that life is so full of compromises and that one has to make a compromise at a certain stage during his life. This also holds true when it comes to dealing with employment contracts and the issues that arise with employment.

We know that employment may be termed as a contract between two persons under which one person, the employee, offers to serve the other person, the employer, under a written contract that details the scope of the service, the conditions under which it is to be provided, the level of control that the employer would exercise and the right and duties of both the employer and the employee. On paper, this may look to be very systematic and methodic, however things do change when these clauses are actually put to practice sometimes.

All employment contracts are framed under an employment law, which gives certain rights and duties to both the employer and the employee. In practice, it is possible that either the employee or the employer may infringe these rights and duties. But often, it is the case that employers are found to carry out such infringements.

These are usually directed towards not recognizing the rights of the employees. Such rights may either be statutory or they may be expressed in the employment contract in writing.

Compromise Agreements

Examples of statutory infringements are where the employer has failed to provide certain protective equipment to the employee due to which he or she has sustained injury or has unfairly dismissed the employee or has made the employee redundant without any solid reason or has discriminated against the employee on the basis of age, sex, color or ethnic origin.

Examples of infringement of express clauses is where it was agreed that the employer would pay the employee a certain amount of salary but failed to do so for no good reason. These cases contribute towards the notion that the employee can lodge a case against the employer in a court of law and claim for damages that may be quite a lot.

Such cases can be long and quite tiresome. Therefore the UK law has devised a solution in the form of a Compromise Agreement. The Compromise Agreement is a specific type of contract under the law, which states that the employee will waive off all his or her claims against the employer for breach of statutory rights of employment, in return for a full and final settlement amount.

This means that the employee can waive off claims pertaining to discrimination, redundancy or unfair dismissal. The Compromise Agreement will only be deemed to be valid if it is made in writing and there is proof that the employee has consulted his or her lawyer and is willing to do so at his or her own free will, and not under coercion or duress. It this thus a useful and convenient arrangement between the employer and the employee, for the employer saves himself from the disrepute as a result of the litigation and the employee gets a fair amount of money that is most representative of the damages that have been claimed.

Compromise Agreement

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