Newcastle Solicitors

I am considering offering an employee a compromise agreement – when should I make the offer ?

Timing of an offer for a compromise agreement can be important for a number of reasons including :-

• An early offer can save time and money
• There may be legal risks of offering  compromise agreement at an early stage of redundancy procedures
• An early offer might be seen as tactical weakness by the employee
• Different considerations apply where a compromise agreement is offered where Employment Tribunal proceedings have been started

What are the considerations for offering  a compromise agreement ?

These considerations can include :-

• Is the employee likely to be willing to sign a compromise agreement ?
• Does the employee have potential employment law claims ?
• The likely costs, prospects and legal position of any Employment Tribunal proceedings
• How employable is the employee for any future employment
• Employee’s contractual and statutory entitlements including unpaid commissions, holiday and bonus
• Possible reasons for including post termination restrictions in a compromise agreement
• Timing of offer and tactics