Compromise Agreements

Compromise agreements are commonly entered into when employers seek to terminate an employee’s employment.

A compromise agreement or severance agreement is a legally binding agreement under which an employee agrees to settle potential claims, normally (but not always) in exchange for payment of financial compensation by the employer. Such an agreement may also include provisions of benefit to an employee, such as an agreed reference letter, and confidentiality obligations. In order for a compromise agreement to be binding under our employment legislation, Jersey law requires that an employee receives independent legal advice on the terms of the agreement. We regularly draft compromise agreements for employers and negotiate terms on behalf of employees.

Please see our Termination of Employment: Unfair and Constructive Dismissal; Redundancy page for information.