PJH Employment Law Solicitors Employment Law Solicitors  

Compromise Agreements

by Philip

One subject that comes up for discussion is whether an offer of a compromise agreement should be made on an open (ie admissible) basis, or on a without prejudice basis (ie non admissible).

My view is that giving an employee an opportunity to leave on an agreed basis was not something an employer needs to hide from a Tribunal’s view. If an employer is going through a disciplinary process and the evidence is such that the employee is guilty of gross misconduct, I can’t see too much wrong in offering an employee on an open basis a compromise agreement with say a pilon in. Likewise in a redundancy situation where selection looks unanswerable, then an open offer of a compromise agreement is nothing a Tribunal would consider unusual.

In my experience the fact that an employer has offered a compromise agreement is well within a Tribunal’s experience and will not, usually, count against an employer.

The fact that an employee has left two employers under a compromise agreement and is bringing a race claim against a third might possibly count against this employee.

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