The Situation
Our client, a senior professional with many years of service, was offered a compromise agreement (also known as a settlement agreement) following a restructure. The agreement included a financial package, confidentiality obligations, and post-termination restrictions. However, the terms were complex, and the client was concerned about the impact on future employment and whether the compensation offered was fair.
The Challenge
The client needed urgent advice to:
- Understand the legal implications of the agreement.
- Ensure the financial settlement reflected their contractual entitlements and potential claims.
- Negotiate amendments to restrictive covenants and confidentiality clauses that could limit future opportunities.
Time was critical, as the employer required the agreement to be signed within a short deadline.
Our Approach
Parslows LLP | Employment law team acted to:
- review the agreement in detail and explain its implications in clear, practical terms.
- assess whether the proposed settlement was reasonable compared to the client’s contractual rights and potential claims.
- negotiate improvements to the financial package and amendments to restrictive covenants to protect the client’s future career.
We also ensured the client received independent legal advice, as required under Jersey law, to make the agreement legally binding.
The Outcome
We successfully negotiated an enhanced financial settlement and secured changes to the restrictive covenants, giving the client greater flexibility for future roles. The agreement was finalised within the employer’s deadline, allowing the client to exit on favourable terms and with peace of mind.
Key Takeaways for Clients
- Never sign a compromise agreement without independent legal advice, it is a legal requirement in Jersey.
- Settlement terms can often be improved through negotiation.
- Early advice ensures you protect your rights and future career opportunities.
How Parslows LLP Can Help
If you have been offered a compromise or settlement agreement, our experienced employment law team can help. We provide clear, practical advice and negotiate on your behalf to achieve the best possible outcome.