Labour Research April 2008

Law Queries

Compromise agreements

Q: A colleague has been offered a compromise agreement and is keen to leave her employment quickly, but she has not had any advice as she did not contact the union until a late stage. The employer has offered the services of its law firm to go through the agreement. Is this enough?

A: For a compromise agreement to be lawful, it must relate to a particular complaint and be in writing. The employee must also have received advice from a “relevant independent adviser” (who can be a union officer or a solicitor). Your employer’s solicitor will not be “independent”, so you should ask that your member is entitled to select her own solicitor.

A solicitor will be able to discuss with her all the circumstances surrounding her employment and identify any potential claims, as well as advising on appropriate levels of compensation.