Severance packages & Compromise Agreements

Compromise Agreements are often issued to employees who are leaving their employment either because of a dispute with their employer or as a result of redundancy or some other business reorganisation.

The benefit to the employer is that the Compromise Agreement will be in "full and final settlement" of claims that the employee may have, especially particular claims under the employment legislation.

In return, the employer will usually offer the employee an enhanced severance or redundancy package on condition that the employee enters into the Compromise Agreement.

The terms of the Compromise Agreement can be tailored to the particular circumstances. The Agreement will usually include Confidentiality and Non-disparagement clauses and often the text of an agreed reference for the employee as well.

We can prepare Compromise Agreements for employers and advise on when and how to make the offer and what an appropriate severance package might be.