In the recent case of McWilliam and others v Glasgow City Council a Scottish Employment Tribunal found that the requirement for an employee to be advised on the terms and effects of a compromise agreement did not mean that they should be advised by the solicitor as to whether the proposed settlement was a good deal.

The case confirms that only a basic level of advice needs to be given by the adviser in order for the compromise agreement to be binding.

In order to validly compromise certain statutory claims specific conditions must be contained in the compromise agreement which include:

• The agreement must be in writing
• The agreement must relate to a particular complaint or particular proceedings
• The employee must have received legal advice from an independent adviser on the terms and effect of the proposed agreement and its effect on the employee pursuing any right at an Employment Tribunal
• The independent adviser must be insured covering the risk of the claim against them by the employee in respect of the advice
• The agreement must identify the adviser
• The agreement must state that the conditions regulating compromise agreements have been satisfied

If you have been offered a compromise agreement by your employer or you are an employer that regularly uses compromise agreements why not contact us for an initial consultation.

Katie Phillips