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The EAT has published a decision reminding employers of the importance of properly drafted compromise agreements.
In Palihakkara v BT plc, an employee who signed a compromise agreement to settle “all claims past and future arising out of the termination of her employment” was able to proceed with claims which arose before termination of her employment.
The compromise agreement was also inadequate because whilst the agreement identified the specific claims to be compromised it did not confirm that the conditions required by all the relevant Acts had been met. In this case, although discrimination on the grounds of race had been identified as a specific claim, the agreement did not confirm that the conditions regulating the agreement under the Race Relations Act 1976 were satisfied.
For the case report click here. |
