A Compromise Agreement is designed to work in either of two cases: -

• A exit strategy for an employee who has either already left or is about to leave an employer and where the employee has a potential claim against the employer for one or a number of possible reasons.

• A present employee who has a potential claim against the employer.

In either case the Compromise Agreement is a contract between the employer and employee. Normally where appropriate the Compromise Agreement will include a severance package, i.e., monies owed to the employee - pay and expenses as well as possible compensation owed for any possible breaches/claims, and when these payments will be made.

Such agreements are intended to mutually end a disagreement and end the possibility of further litigation between the parties either at the Employment Tribunal or Court.

When a Compromise Agreement is signed it prevents the employee from pursuing the matter further. For a Compromise Agreement to be binding it must be stated within the agreement that the employee has received independent legal advice from a lawyer e.g., a practicing solicitor or a barrister with indemnity insurance, or a trade union representative.

A legal adviser should attempt to negotiate an appropriate settlement sum and help to protect an employees? future career, by for example ensuring that as part of the Compromise Agreement a reference is agreed.

A COT3 form is a formal record of the terms of a settlement between employer and employee negotiated through ACAS. A COT3 form can be presented to an Employment Tribunal at any time before a hearing to confirm that an agreement has been reached. As an ACAS officer will not have the interests of the employee as their first concern, but rather an end to a disagreement and to produce a settlement between the parties, we would advise that an employee seek advice from an employment law specialist. The employee can then be informed of the possible benefits and losses of a potential agreement.

Iff you require our assistance with negotiating a Compromise Agreement or COT3 Agreement please complete our Free Online Assessment Form, now. We will then respond to you usually within 48 working hours, including a free, initial assessment of your claim.

Alternatively you can download the free initial assessment form and send it to net employment solicitors at the address on our contact page.