Renaming of Compromise Agreements to Settlement Agreements
30 July 2013
Mayer Brown Legal Update
With effect from 29 July 2013, Compromise Agreements will be known as Settlement Agreements. In practice, this means that compromise agreements will be renamed as Settlement Agreements and any references to “Compromise Agreement” in the body of the agreement will be changed to “Settlement Agreement”.
Our template agreement will contain an additional change so that, in the Full and Final Settlement clause, the wording, “…the conditions regarding compromise agreements under s203 Employment Rights Act 1996…” will read “the conditions regulating settlement agreements and compromise agreements under s203 of the Employment Rights Act 1996…”. (This is because some employment legislation has not yet been amended to reflect the new “settlement agreement” terminology.)
If you have any questions regarding your agreements, and how these should change, do not hesitate to contact us.