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Compromise Agreement: Employment terminated without proper dismissal

25 January 2010

We advised our client in relation to a compromise agreement which he had been given, without warning, by his employer. His employer had not been through a dismissal or disciplinary procedure, or given him a proper reason for his dismissal. Our client was therefore in a strong position to negotiate the terms of his termination package.
We were able to negotiate an increased payment of compensation plus more tax efficient structuring of the agreement, enabling him to receive a payment tax free which his employer would otherwise have taxed. We also agreed that the company would continue to provide private medical insurance to our client and his family for a number of months following the termination of his employment. This was of particular value to our client given a member of his family was undergoing costly medical treatment.
We were also able to secure an increased contribution to legal fess from the employer, which helped cover the additional negotiations.
The client was therefore able to walk away not only with considerable cash compensation but with a benefit of considerable value.