A transaction agreement (formerly known as a compromise agreement) is a legally binding agreement between you and your employer. This generally provides for an employer`s severance pay in exchange for your consent not to make claims in court or court. As a general rule, the employer requires that you keep the conditions, such as. B the amount and circumstances of termination of your contract. Please note that a “compromise agreement” has been renamed and has been known for many years as the “transaction agreement.” We have only included a page of compromise agreements for those who are a little late. For more information on this legal area, please go directly to our transaction agreements page. In the United Kingdom, a compromise agreement[1] is a certain type of legal contract between an employer and its employee (or ex-employee) under which the worker is paid, often negotiated, in exchange for the fact that he or she is no longer entitled to the employer because of a violation of a legal obligation of the employer. [2] [3] [4] We offer you a cost guarantee that you will not be charged more than your employer is willing to pay for by giving you advice on the terms of your compromise agreement. If you want us to negotiate an increase in the compensation proposed in your compromise agreement or if we intend a right against your employer, we can offer you an option without any offer of income and fees. Philip Landau and his team are very experienced in discussing compromise agreements after negotiating positively with employers across the UK. These include a large number of investment and retail banks, as well as other financial institutions in the city. Seamus: There has to be some kind of incentive in the agreement for the employee to sign.

In general, you will see that ex-Gratia payments are sometimes made. Payment in place of termination is also paid. There are different tax implications for which specific advice is needed. The advantage for the employer is that it is able to draw a line under a worker`s departure or complaint and is protected from future rights.