How to play safe with employee liabilities and disengage with pride
Being an employer or an employee, if a workplace situation is gets beyond your control, then it
is definitely time to call it quits and bring the employment agreement to an end. The legal way to
handle such a condition is through entering into a 'Compromise Agreement'. Many employers
use such them to settle workplace disputes.
So what is a compromise agreement anyway?
Not to worry! It's a good omen after all. A Compromise Agreement is a legal bond between the
employee and the employer whereby an employee agrees not to proceed with any claims (like
unfair dismissal or breach of employment contract) against the employer after termination of an
employment contract. It is carried out in exchange for a certain amount of money that is given to
the employee as compensation. In Ireland, compromise agreements are pursued under the
Terms of Employment (Information) Act, 1994.
Section-7 of the Act states that an employee may file a legal complaint to the
commissioner if the employer contravenes any of the employment agreement terms
Section-8 of the Act states that the employee may approach a tribunal to purse a
claim raised against the employer
Section-9 of the Act states that if a complaint is not entertained by the employer in
the light of Section-7, an employee might proceed to the District Court which shall
assist with the resolution. The employee shall then be served by the employer in the
form of a compensation or any other suggested form
The good part
In any case, signing a compromise agreement is in the best interest of both the employer and
the employee. It is a legal way to bid farewell while knowing that both parties have reached a
common ground to settle any grievances and that there will be no trouble in future.
The Employer: For an employer, such agreements pave a much safer way to
safeguard their industry reputation and market value. Many employers would use it
for a variety of purposes like dismissing senior staff without humiliating them,
releasing a junior employee from their service, avoiding any legal trouble, etc.
The Employee: Being an employee, you receive the desired compensation and the
employer's job reference also helps in curtailing any issues that may arise regarding
your employment with other firms or companies in future.
If you require your employee to sign away their rights while refraining from a claim, then
this document is for you
A compromise contract should be tailored to the situation at hand. If the agreement is not
befitting per the situation, you have slim chances of success. The Compromise Agreement
template documented by Net Lawman includes legal provisions that can play a pivotal role in
preventing a future claim before an employment tribunal.
Applications and Features of this document
Primarily written to settle claims with senior staff members
Can be used as a framework for negotiation of claim settlement in the case of terminated
Can be used for junior employees with minor amendments
Well documented to avert future applications to the employment tribunal
Well designed and structured so to cater County Court claims
Includes detailed notes for guidance
Written in plain English for accurate interpretation and communication
Contents of this document
This compromise contract by Net Lawman mainly includes details related to the following:
Continuation of employment for fixed period until the “termination date” - as short or long
a period as you wish
Extent of continuing entitlement to pay and benefits
Return of organization’s property
Return of car
Guarding secrets and information
The compensation package
Restrictions on future competition by the ex-employee
Press release and publicity
Usual legal provisions to protect your interests
About Net Lawman
Net Lawman Ltd, established in 2000, is an English company and is the premier supplier of
comprehensive legal documents and legal forms. Delivering quality and cost effective legal
products is the core philosophy at Net Lawman. The company offers a range of specialized
services including legal advisory and bespoke drafting services. Net Lawman has strong field
expertise and a dedicated team of lawyers. The company has presence in United Kingdom,
Scotland, Ireland (Republic), Australia, New Zealand, South Africa and India.