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28 Oct 2009

Over 70% of tribunal cases settle before the hearing stage is reached. One way of settling an employment tribunal claim is to agree a formal compromise agreement fulfilling section 203 of the Employment Rights Act 1996 (ERA).

Compromise agreements are therefore the only way an employer can conclude a binding agreement of an unfair dismissal, discrimination or other statutory claim unless ACAS have been involved.

The agreements, introduced under the Trade Union Reform and Employment Rights Act in 1993, are predominantly used in cases of redundancy, unfair dismissal or unlawful discrimination. As company’s seek to cut costs, is it likely that their will be a major surge in demand for compromise agreements from both employers and employees.
PBS UK have recently added a Compromise Agreement to their HR Document shop details the employee’s forfeiture of claims such as unfair dismissal, unlawful deduction in wages, unfairly selected for redundancy, discrimination, harassment and breach of contract. The PBS UK Compromise Agreement includes a statement to be signed by a solicitor holding a current practicing certificate.

A Compromise Agreement can be purchased from our HR Document Shop by visiting the Human Resources Document Shop link above.

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