Subjects - Employment - Compromise agreements
The rights of an employee to take an employer to an employment tribunal over a grievance, which is usually about dismissal, but it could be about anything in the employment relationship, is a right that cannot normally be removed from the employee by contract.
However, the law does specifically provide that an agreement that is written down and complies with certain statutory requirements can validly exclude the employee's right to go to a tribunal. These agreements are called compromise agreements.
Compromise agreements are usually entered into between an employer and an employee when the employee is leaving that employment. It would usually provide for the employee to be paid a sum of money and certain other related obligations on either party, in return for which the employee agrees not to pursue any grievances before an Employment Tribunal. Such an agreement, if it is in writing, and it complies with the appropriate legal rules, will be binding on both parties and will prevent an employee taking a claim out before an Employment Tribunal or otherwise.
We have many years experience in both drafting these Compromise Agreements and advising on them. One of the legal requirements to make these Agreements valid is that the employee has to have had independent legal advice on the content of the Agreement and we frequently act as the independent legal adviser in these circumstances. Where we do this we act for the employee, although almost invariably our fee for the advice is paid by the employer.