Compromise Agreement

A Compromise Agreement is a legal contract used to resolve disputes between parties, typically in employment situations. It usually occurs when an employer and employee agree to end their working relationship amicably. The employee often receives a financial payment or benefits in exchange for waiving their rights to pursue legal action against the employer for issues like unfair dismissal or discrimination. These agreements help provide closure and protect both parties from future claims, ensuring that specific terms are clear and legally binding. It's commonly reviewed by a solicitor to ensure fairness and understanding.