What terms does a Compromise Agreement have to contain?
The compromise agreement will state the full breakdown of the payments you are receiving and the extent to which the sums will be paid free of tax. Usually, up to £30,000 compensation can be paid without deduction, but you will have to give tax indemnity to your employer within the agreement. This is entirely usual. The compromise agreement will also provide for confidentiality both in terms of your employers trade secrets and business affairs and also of the terms of the agreement. You will be paid a small additional sum for agreeing to this-usually a few hundred pounds. You will also usually be required not to make any derogatory comments against your employer. Some employees prefer such agreements to be mutual, and employers are often receptive to such request. The compromise agreement may confirm the existing post-termination restrictive covenants that you are already bound by under your contract of employment. In some cases, the covenants are new, having appeared in the compromise
