A 'compromise agreement' is a legally binding agreement following the termination of your employment. It usually provides for a severance payment by your employer, in return for which you agree not to pursue any claim you may have to an employment tribunal. The compromise agreement will also deal with the notice element in your contract of employment and may provide for a "payment in lieu".
The advantage to your employer is that once a Compromise Agreement has been finalised generally you can't take them ato an Employment Tribunal.
Compromise agreements are the main legally binding way that a claim can be settled without tribunal proceedings having been initiated.
The law requires that you must have the compromise agreement explained by an independent solicitor before the agreement becomes binding.
The solicitor giving the advice must also sign the agreement and certify that the appropriate advice has been given.
