I often get asked what sort of amendments are usually needed to compromise agreements, which have of course been renamed settlement agreements. Well I can count on one hand the amount of times that I have signed a compromise agreement in its first draft. As it has been drafted by the employer, it is common for amendments to be required.
Here is a list of common amendments:
1. Increase in compensation payment;
2. Inclusion of a reference;
3. Making the non-derogatory comments clause mutual;
4. Looking at the taxable treatment of payments;
5. Changes to the post termination restrictions referred to in the agreement;
6. Retention of benefits like healthcare or company car beyond the termination date;
7. Inclusion of an agreed communication dealing with the employee’s exit;
8. Adding in holiday payments due;
9. Amending clauses dealing with return of company property;
10. General wording of clauses to make them less onerous.
Each agreement is different and it largely depends on the drafting by the employer and the negotiations that follow.