From July 2013 Compromise Agreements became known as Settlement Agreements in the UK.
What is a Settlement Agreement?
A legally binding agreement which is usually between and Employee and Employer setting out the agreement reached where employment is being terminated or where the parties are resolving a dispute.
The purpose of the agreement is to give certainty to the parties and it is essentially that you fully understand the content and implications of signing the agreement before you enter in to the same.
It is a legal requirement that you have independent legally advice from a professionally qualified adviser (Employment Rights Act 1996) to give that advice and in many cases the Employer will pay for you to obtain that advice or contribute to your legal costs.
If you sign the agreement and accept the settlement terms you specifically exclude your right to make an Employment related claim against your Employer.
If you are offered a settlement or compromise agreement, you should contact an expert immediately to ensure that your rights are adequately protected.