Use our Compromise Agreement (now called a “settlement agreement” under section 23 of ERRA 2013) to settle potential or actual disputes with employees.

Using our Compromise Agreement template

You can use the compromise agreement:

whenever you dismiss an employee if there is a likelihood of the employee’s bringing a claim; or
if you are already in a dispute with an employee but have negotiated a settlement of it.

This compromise agreement will provide a binding basis for settlement of any claims the employee has against the business.

The need for independent legal advice

For the compromise agreement to be binding on the employee, they need independent advice on it from a solicitor. The solicitor must sign a certificate confirming the independent advice on the agreement has been given.

The solicitor will explain to the employee that by signing the agreement they waive their right to bring a claim against the business. The independent solicitor will also explain to the employee that the business is in turn dropping any claim it may have against the employee.

Our compromise agreement complies with the Employment Rights Act 1996, the Employment Act 2002 and all of the current employment best practices. The agreement includes a confidentiality clause so that the ex-employee can’t misuse any of your confidential information, nor details of the terms of the agreement.

If you would like more detail on how and when to use a compromise agreement, please read our full guide on How To Use A Settlement Agreement To Resolve An Employment Issue.

Why use a Legalo template?

Legalo use expert UK solicitors to draft all of our templates. Our template comes with a clear guide to make using it easy. After buying the template, you can reuse it whenever you need it. Also when we update the template, then we will give you access to the updated version free of charge. For example, we would update it to cover changes in the law or practice.

Legalo provides you with clear, concise, easy-to-use templates and great value for money. We also offer a full money-back guarantee in case you are not satisfied with our compromise agreement template.