What is a Compromise Agreement?

It is a legal document setting out the financial and other arrangements to apply on the termination of an employee’s employment.

It is prepared on behalf of the employer and is very important because its effect is to prevent the employee bringing a claim against the employer in the future. It is a statutory requirement that before signing the Compromise Agreement the employee receives professional advice from a solicitor or other suitably qualified person.

Powells can prepare a Compromise Agreement for a fixed fee.

What is included in the Fixed Fee?

The fixed fee assumes that you have agreed with the employee the compensation and other arrangements to apply when the employment comes to an end.

You will be required to complete a short questionnaire to enable us to draft the agreement. We recommend that you have the employee’s contract of employment beside you to help complete the form.

The fixed fee includes:

• seeing you once in consultation, if requested;
• preparing the draft agreement;
• explaining the effect of the agreement;
• making any minor amendments;
• explaining how the agreement is signed and certificated;
• providing final copies for signature.

The fixed fee is not appropriate where final terms have not been agreed with the employee or where you have agreed arrangements outside the scope of our standard template. If you would like a bespoke document to cover such circumstances we are happy to prepare it or to review one you have prepared yourself. Please contact us for a detailed quote.

Why pay a Fixed Fee?

By paying a fixed fee at the start of your case you have certainty about the costs involved. The alternative is to pay an hourly rate (£220 plus VAT) for the time your solicitor spends on your case.