Why Does My Employee eed their Own Solicitor?

Because it is a legal requirement – otherwise it would not be legally binding. The employee must have their own independent adviser to sign the Agreement to confirm that advice has been given. Advice can only be given by a qualified lawyer, a qualified trade union official or a qualified advice centre worker. Any adviser must have indemnity insurance. The employer usually provides a contribution towards the cost of the employee’s legal advice. The employer’s financial contribution towards an employee’s solicitor is usually between £250 and £500 plus VAT.

What Should I Expect From My Solicitor?

Your solicitor will draft a Compromise Agreement which ensures that once signed by the employee and their solicitor your business is fully protected and not at risk of litigious claims. This will include a confidentiality agreement so that the employee cannot discuss the terms of the Agreement and sometimes even the existence of the Compromise Agreement. Penalties can be set out whereby the employee would have to repay the compensatory sums if they breach the terms of the Compromise Agreement. Where you are concerned that the employee may not be aware of or will not adhere to post-termination restrictions, the Compromise Agreement can repeat these to provide further protection to your business.

How Much Will it Cost Me to Seek Legal Advice?

Solicitors usually charge between about £500 and £1,000 plus VAT to draft a Compromise Agreement depending on the number of issues that have to be dealt with. Any further costs will then be dependent on the amount of legal input required to negotiate with the employee’s solicitor to ensure it is signed off. The aim should be to reach an agreement whilst retaining all relevant clauses to protect your business.

Why Ask an Employee to Enter into a Compromise Agreement?

By signing a Compromise Agreement and accepting the settlement terms, the employee forfeits their right to make a claim against you in a court or an employment tribunal for all claims listed in the Agreement. This means that all possible claims against you need to be individually listed in the Compromise Agreement. The only exception where an employee would not waive their right to bring a claim having already signed the Compromise Agreement is where an employee is induced into entering into a Compromise Agreement but the facts have been misrepresented. For example, where the employee is told that their job is redundant but it then transpires that their job has been given to someone else.

Do I also Need to Agree to a Confidentiality Clause as well as the Employee?

Most Compromise Agreements include a standard confidentiality agreement for the employee. In some cases, it will also be important to the employee that they have an assurance that the circumstances and /or the terms of the Agreement will be kept confidential by their employer. This may require a mutual confidentiality clause whereby you agree to use your best endeavours to ensure that you and your employees don’t disclose these details to anyone.

Our Compromise Agreement advice has helped hundreds of clients over the years, so why not get in touch and see if we can help you today.

Author Bio: Martin Searle Solicitors were founded back in 2004 and have offices in Brighton and Croydon. They pride themselves on being a new kind of Community Care Solicitors; providing niche, comprehensive legal services in Employment Law, Housign Law and Community Care Law. The adept team of solicitors have a wide range of experience advising, acting and training for employers, employees, local authorities and landlords, to name but a few. For more information visit www.ms-solicitors.co.uk

Category: Legal
Keywords: compromise agreements, compromise agreement, legal advice, compromise agreement advice