Indemnities in Compromise Agreements

Businesses will welcome the decision in an ongoing High Court case concerning an indemnity in a compromise agreement provided by an employer to a former employee. The court held that the words "any administrative, regulatory, judicial or quasi-judicial proceedings" did not cover investigations by the police into alleged criminal behaviour by the employee.

The words used in the indemnity in the agreement are standard, so their interpretation may have an impact on many businesses. The decision also underlines the importance of accurate drafting of contract terms or provisions in compromise agreements.

This checklist sets out the key issues a business should consider before entering into a compromise agreement with an employee.

For further information, please contact our Employment Law Team.

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O'Neill Patient Solicitors LLP
Chester House, 2 Chester Road, Hazel Grove,  Stockport, Cheshire, SK7 5NT


0161 694 3000 / 0161 483 8555



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