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What is a Compromise Agreement? A Guide For Jersey Businesses

Jersey Lawyer meeting with client to discuss compromise agreementsCompromise Agreements for Jersey Businesses

What are Compromise Agreements?

Compromise Agreements are documents between employers and employees to settle claims relating to dismissal and other issues in the employment relationship.

What is the effect of a Compromise Agreement?

A compromise agreement will bring a full and final end to the employment relationship with an employee. It is therefore important for an employer to ensure that the agreement is carefully considered and drafted.   The compromise agreement should cover remuneration, holiday pay and any other payments from the period of the employee’s dismissal up to the point of devising the agreement.

If a Compromise Agreement is signed as full and final can an employee bring a claim against my business at a later date?

A Jersey Compromise Agreement will generally include all and any issues that may have arisen between the business and the employee, this will include unfair dismissal, redundancy, personal injury in the workplace and anything else that could be contemplated in the relationship. Once the employee has signed a compromise agreement it would be very difficult for that employee to bring a claim.

Am I required to pay for a lawyer to advise the employee on the terms of the Compromise Agreement?

There is no law that requires employers to pay for employee legal representation. However, in recent years, it has become more common for employers to contribute to fees.  Indeed for a compromise agreement to be legally binding it will require a certificate from a lawyer so to avoid a future claim it is worth a contribution to the employee to ensure he or she obtains proper advice.

Christopher Austin | Head| Employment Law

For advice, assistance or further information about compromise agreements please do not hesitate to call 630530 or email us on employmentlawyers@parslowsjersey.com


Parslows Jersey can help

Our employment lawyers are experts in all aspects of Jersey employment law, including employment contracts and policies, redundancies, disciplinary, capability and grievance procedures, discrimination, compromise agreements and tribunal representation. Our lawyers have a proven track record in providing advice and representation on a wide range of employment law issues. Our employment lawyers have the experience and knowledge you need, whether advising on a contract or representing you in an employment tribunal. We’re committed to helping you get the best outcome possible. We act for both employers and employees.


Please note that the information provided on this website is for general information purposes only and is designed to provide you with an outline of the legal services we offer.  Whilst we endeavour to ensure our information is correct and useful, we make no representations or warranties regarding the accuracy or completeness of the information offered.  Information on our website does not constitute legal advice and Parslows Jersey accepts no liability for any loss or damage arising out of, or in connection with, the information found in this website.  Please consult a lawyer at Parslows Jersey in the event that you require professional assurance that our information, and your interpretation of the same, is correct.

 

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