It is a legally binding agreement between you and your employer which relates to the termination of your employment.
Compromise Agreements can be used where there is a ‘friendly’ parting of the ways and terms have been agreed between you and the employer. More often than not, there is a potential claim – a claim the employer wants to ‘go away’. So in simple terms you sign a Compromise Agreement on the basis that you will not bring a claim against your employer – in return they pay you an agreed amount.
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