compromise agreements and probably the world’s most expensive lunch

It is an often-heard maxim in contract law that a party cannot seek to claim the benefits of a contract which he has breached. While that is a rather simplistic statement and is, in practice, subject to numerous qualifications and exclusions, the decision of the High Court in Imam-Sadeque -v- Bluebay Asset Management (Services) Limited…

what are “settlement agreements” and how, if at all, do they differ from compromise agreements?

During the second reading of the Enterprise and Regulatory Reform Bill on 11 June Vince Cable announced that the Government wants to promote and increase the use of agreements relating to the termination of employment as an alternative to employment tribunal proceedings. No details were provided but the intention is to "ensure that the offer…

Compromise agreements

For many years it has been the practice of the Inland Revenue, now HMRC, to publish “extra-statutory concessions”. These effectively correct errors in and omissions from legislation which would result in tax being collected where it would be inappropriate. The practice has always been of questionable legitimacy. For HMRC to have discretion, even via published…

newsletter – Equality Act 2010 – compromise agreements

The general rule is that informal “out of court settlements” of employment disputes are not legally binding in the sense that they cannot exclude an employee’s right to take the matter concerned to an Employment Tribunal. As is well known, one exception to this general rule is a formal “compromise agreement”. Provided it complies with…

Enterprise & Regulatory Reform Act becomes law – dotted with various employment law reforms

On 25 April 2013, the Enterprise & Regulatory Reform Act became law, on receiving Royal Assent. It is an enormous Act and, quite frankly, a thorough hotch-potch. There are Parts covering the UK Green Investment Bank, abolition of the Competition Commission, laws concerning cartels, the appointment of bankruptcy adjudicators, copyright law and rules concerning estate…

settling TUPE claims

Two recent cases have considered the effect of compromise agreements in TUPE cases where claims are made against more than one employer. In Optimum Group Services Plc v Muir the Employment Appeal Tribunal looked at the situation in which an employee with a claim arising out of a TUPE transfer reached a settlement with one…