Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Compromise agreement definition

What does Compromise agreement mean? In employment practice, a compromise agreement is a written contract used by an employer and employee to settle workplace disputes—often on termination—in return for compensation and other terms, with the employee waiving specified statutory and contractual claims. In England & Wales and Scotland, the statutory term since 29 July 2013 is settlement agreement (renamed by s.23 Enterprise and Regulatory Reform Act 2013). To validly waive statutory employment claims it must: be in writing; identify the particular complaints; confirm the worker received independent legal advice from a relevant, insured adviser who is identified; and state that the statutory conditions...

Employment settlement (compromise) agreement – short-form precedent with redundancy payment, waiver of claims and adviser certificate (Northern Ireland)

Published by a LexisNexis Employment expert

Precedents

This Agreement is entered into on [ insert date ]

Parties

[ Insert Employer’s name ], whose Registered office is at [ insert Employer’s address ], company registration number [ insert Employer’s company number ] (Employer)
[ Insert Employee’s name ] of [ insert Employee’s address ] (you)

The parties agree as follows:

1 Termination of employment

1.1 Your employment with the Employer [ will terminate OR terminated ] on [ insert date ] (Termination Date) due to [ insert reason for termination ].

1.2 You [ will be OR have been ] paid your accrued basic salary, after deductions for income tax and primary class 1 (employee) National insurance contributions (PAYE Deductions), and [ will have OR have ] been provided with your contractual benefits [ , including a payment of £[ insert amount ] in respect of [ insert number ] days’ accrued but untaken holiday entitlement ] [ [ and ] including any relevant contributions to your Personal pension scheme ] (each subject to PAYE Deductions) for the period up to and including the Termination Date, via payroll in the normal way...

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Web page updated on 22/05/2026

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