Should I compromise my unfair dismissal claim?

Redmans Solicitors
October 17, 2012

If you’ve resigned from your employment, have been dismissed or are being offered redundancy then you may have a reasonable case for unfair dismissal in the Employment Tribunal. If you do have a (potential) case for unfair dismissal then your employer may choose to offer you a compromise agreement. If you’ve been offered a compromise agreement then you should obtain compromise agreement advice from an expert employment solicitor. However, although the solicitor you instruct should advise you on whether the compromise agreement is to your advantage you’ll probably want to know something about your compromise agreement and your unfair dismissal claim prior to instructing a solicitor. This post therefore offers a basic introduction to what compromise agreements are and what you should be analysing in your potential unfair dismissal claim. It will therefore look at:

What is a compromise agreement?
What is unfair dismissal?
What should I be looking at when offered a compromise agreement for my unfair dismissal claim?

What is a compromise agreement?

A compromise agreement is a specific type of contract, regulated by statute, under which an employee agrees not to pursue their common law or statutory rights against their employer in return for a fixed sum of money or some other benefit. The Trade Union Reform and Employment Rights Act 1993 (TURERA 93) introduced compromise agreements but most of the relevant provisions are now contained within the Employment Rights Act 1996. In order for a compromise agreement to be valid the employee must receive their compromise agreement advice from a qualified independent solicitor.

What is unfair dismissal?

Unfair dismissal is a statutory right contained in the Employment Rights Act 1996. Under the ERA 96 employees have the right not to be unfairly dismissed by their employer. If they are dismissed their employer must follow a fair procedure in dismissing them and also make a decision to dismiss them that is within the range of reasonable responses in the circumstances. This is a relatively low bar for employers to meet in most circumstances and they’re given a large amount of discretion to dismiss employees. However, if you think that you have a valid claim for unfair dismissal then it’s worth contacting an unfair dismissal solicitor.

What should I be looking at when offered a compromise agreement for my unfair dismissal claim?

First off, if you’re offered a compromise agreement solicitor then you should obtain independent legal advice from a qualified solicitor. However, here are a brief (and non-exhaustive) list of things you should be looking at if you’re thinking of compromising your unfair dismissal claim: