As we have reported on previously, ‘Compromise Agreements’ are to be renamed ‘Settlement Agreements’ from 29 July 2013.
Despite the name change, it is extremely likely that some documents termed ‘Compromise Agreements’ will still be around after the 29 July 2013, because they have not been entered into yet or the issuing party has not updated the name. Some people have worried that this may affect the validity of a ‘Compromise Agreement’.
You will be pleased to hear that the general consensus is that, whether the agreement is described as a ‘Settlement Agreement’ or ‘Compromise Agreement’, it should still be valid to settle claims, provided it complies with the necessary statutory provisions and states that these have been complied with. If you are unsure about what wording must be included in such an agreement, you should certainly seek advice.
If you need a Settlement Agreement prepared, we can provide one quickly and for a fixed fee – just ask us for a quote.
The above said, the safest approach is to ensure that all such agreements are called ‘Settlement Agreements’ from 29 July 2013, or if they are likely to be concluded after 29 July 2013.
If you would like advice on a Settlement Agreement, whether you are an employer or employee, we can help. Please contact any member of the Pure Employment Law team (01243 836840 or [email protected]).