Seamus: There has to be some kind of incentive in the agreement for the employee to sign. In general, you will see that ex-Gratia payments are sometimes made. Payment in place of termination is also paid. There are different tax implications for which specific advice is needed. For many years, employers have increasingly used compromise agreements as a mechanism to prevent future court complaints. The ICPD investigation showed that the main reasons for the use of the compromise agreement (excluding the payment of an existing claim) were to eliminate an employee due to poor performance or misconduct (38.95), to avoid legal challenges in dismissal situations (25.75) and to facilitate the payment of executives in a free manner (24.3%) and on the other. In practice, a compromise agreement also includes the waiver of any right of infringement as well as legal rights, although such a waiver does not have to meet the same requirements to be valid, since a right to infringement is a common right of law. Scott: A compromise agreement, I think it always is, you have to list all the things you compromise. A settlement agreement (formerly called a “compromise” and, in fact, the same) is the only way for an employer to legally induce a worker to waive his or her rights to apply for work. ACAS has published a detailed guide to transaction agreements with other information. The protection of confidential information is generally essential for a company and, therefore, compromise agreements often contain confidentiality clauses, for example, the staff member agrees: in many cases, a company may want to pay an employee in exchange for an effective waiver of its potential rights. Companies can reach an agreement with an employee to settle potential claims while they are still working for the company, but in most cases their employment is terminated (or just before the end). Although it is customary to enter into compromise agreements when the employment has been laid off (or is nearing its end), it is possible to conclude one in which employment continues.