How to Make the Right Use of Compromise Agreements

Employees working in different organizations and companies across UK often think of making use of compromise agreements to their advantage, but fail to do so, only because they don’t know all about these compromise agreements UK law authorities have created, to safeguard the interest of both employers and employees

There also are many people who come from outside UK to work in the country and they often get confused about similar laws they had back in their nations with the ones that prevail in UK.

Let us take a look at 4 must know facts about rules regarding compromise agreements in United Kingdom

When to Use them: These kinds of agreements are often used by both employer and employees when there is a case of unfair dismissal, redundancy, constructive dismissal or discrimination on any grounds. Usually, when an employer is about to terminate and employee’s employment contract they make use of these rules to keep themselves on the safer side. These are also used by employees to safeguard their position and job in a company. Off late, the maximum use of these compromise agreements has been reported in cases of redundancies as the employers normally have to deal with more legal responsibilities in case of redundancies.

What Employees should know</b>: The employees of an organization often wonder if these agreements hold them from taking any legal step against the company they are employed by. The answer to this question is no, as it only applies in matters of the actual breach. The law clearly says that the employees have legal freedom to come out of contract of his or her rights of employment. This means that even if there is a different claim against the employer you still are in a position to take matters to Employment Tribunal. Normally, the claims made after the agreement signing are about a breach of terms in the agreement, personal injury claims and claims regarding accrued pension amounts.

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How to Save by Not Sitting across Employment Tribunal: In most cases employers want to keep things simple and low profile and they usually try their best to make sure the case doesn’t across Employment Tribunal but at times even the employers are not sure about what they can potentially lose. The next crucial thing to understand here is dragging a claim before an Employment Tribunal is a costlier affair than compromise agreements. By not making a present in front of the tribunal, savings on excess legal fees and tribunal fees can be made. It is also a regular practice that it is the employer that has to pay these fees for both legal sides in case of compromise agreements but if the case is escalated to Tribunal then even the employees have to shell out money to pay the legal charges.

What to do in case of a Contract Breach: If the employer doesn’t pay the decided amount within the stipulated deadline, the employees are free to sue them and get back the money they deserve. Similarly, if an employee breaches the contract by any means, the employer can also drag the employee before Tribunal. In any case, before making a legal move, it becomes very important to get the assistance of the solicitors who deal with compromise agreements.

Author Bio : Erik McGonagall runs a law firm in Hampshire. And, his team offers legal services to all kinds of business and private clients including medical negligence claims, compensation claims, and family law cases.

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