Unless CASA has been involved and arranged a COT3 transaction, COT3 being the name of the form used[5], compromise agreements are the only means by which a worker can waive legal rights, such as dismissal, discrimination or the right to severance pay. [6] The contract is valid only if (i) it is submitted in writing and (ii) the worker has received independent legal assistance from a competent advisor with professional liability insurance. An employee cannot compromise potential future claims, although claims already created and unknown to the employee may be made. The Employment Rights Act of 1996 provides for the terms of validity of compromise agreements in Section 203. The Equal Opportunity Act 2010 also regulates the validity of compromise agreements, but a possible mis-formulation may have had an impact on the scope of compromise agreements to resolve discrimination complaints. In the United Kingdom, a compromise agreement[1] is a certain type of legal contract between an employer and its employee (or ex-employee) under which the worker is paid, often negotiated, in exchange for the fact that he or she is no longer entitled to the employer because of a violation of a legal obligation of the employer. [2] [3] [4] Employers are increasingly encouraged by the government to use compromise agreements as a mechanism to prevent future court complaints. This is often the case for dismissal situations, but this can, for whatever reason, resolve a labour dispute – for example, if the employer has not followed a fair dismissal procedure or if the relationship with a worker has simply collapsed. You must have the compromise agreement declared by an independent lawyer before the agreement becomes binding. The lawyer giving the advice must also sign the agreement and confirm that the advice has been given. We are able to quickly and remotely return our advice on your compromise agreement, wherever you are.

This is usually done by direct email and telephone contact with you, your employer`s staff or your employer`s legal advisors. Of course, we are always happy to meet you in our offices if you prefer. Under what circumstances is a compromise agreement appropriate? Any agreement should be tailored to the circumstances of the case. It is therefore difficult to choose a common solution for the development of a compromise agreement, although this approach can be used in more general cases.