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Employers failure to fulfil Compromise Agreement led to Employment Tribunal Claim


Lawson-West Solicitors - Expert Author

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Issued 11th January 2010

A Compromise Agreement generally offers an employee compensation in return for not making an employment tribunal claim against the employer. Once a compromise agreement is signed, an employee cannot then bring an employment tribunal claim against the employer providing the compromise agreement satisfies provisions in the Employment Rights Act 1996. However, if the employer does not fulfil their side of the compromise agreement, then the employee may bring a claim.

In Vincent v Horizon Recruitment Ltd, the employee agreed to resign in return for a financial settlement set out in a Compromise Agreement. However, the employee subsequently submitted an employment tribunal claim against her former employer for misrepresentation in inducing her to sign a Compromise Agreement in return for a financial settlement, which the former employer had failed to make. The Employment Tribunal found that the Compromise Agreement was valid and the employee had signed the Compromise Agreement after being induced and/or reliant on a material misrepresentation on the part of the former employer. The employer appealed. The Employment Appeal Tribunal found that employers and employees are permitted to make valid Compromise Agreements and the Employment Tribunal has to ensure that any Compromise Agreement is valid and so was correct in making a finding of misrepresentation. The appeal was dismissed.

This means that employers should take care to comply with the terms of Compromise Agreements as failure to do so may result in an Employment Tribunal claim rather than just enforcement proceedings.

Employees considering making an Employment Tribunal claim if an employer fails to comply with a Compromise Agreement should be aware that time limits apply to such claims which will be rejected if they do not meet the deadlines.

If you have been asked to sign or draft a Compromise Agreement, please contact Ashley Hunt or Carrie-Ann Randall now on 0116 212 1000. Lawson-West’s employment law experts can assist in both drafting and negotiating terms in a Compromise Agreement.

About the Author

Lawson-West specialise in commercial, business and employment law. Our team of dedicated commercial solicitors can help with buying or selling a business, business law and disputes, landlord and tenant issues and commercial property. Our expert employment team can offer practical advice and guidance on all aspects of employment law including redundancy, compromise agreements and dismissal procedures. Visit for more information.

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Article Published/Sorted/Amended on Scopulus 2010-01-11 20:03:29 in Legal Articles

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