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Government heeds our advice on compromise agreements

5 April 2012

The government has responded to our concerns about the validity of compromise agreements drafted under the Equality Act. From 6 April, the Equality Act 2010 (Amendment) Order 2012 will amend section 147 to confirm that an employee's lawyer can be an independent adviser for the purposes of preparing a compromise agreement.

Law Society president John Wotton commented:

'The wording of this section casts doubt on whether a solicitor for the employee could be recognised as an 'independent adviser' for the purposes of preparing a compromise agreement. This could have rendered unenforceable any discrimination-related elements of a compromise agreement made following an employment dispute on which the solicitor had up until that point given advice to the employee.

'Employers would not have been able to safely rely on these agreements without the risk of challenge due to the ambiguity in the legislation.'

Full press release