Why not settle for a Compromise Agreement?

The government has announced its proposals for employment law reform, which include the renaming of Compromise Agreements to Settlement Agreements from April 2012. The rationale behind the changes is that the word ‘compromise’ elicits connotations of inequality regarding negotiation of a fair settlement and that a departing employee may be ‘compromising’ their employment law rights. Hence the new name Settlement Agreement will ᆪタワemphasise the benefits they can offer as a way of resolving and bringing finality to disputes.

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