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hello my name is Andrew Lloyd and Im head of employment law here at Lord Donna solicitors well a compromise agreement is a written contract that the you enter with your employer in order to settle a dispute about your employment well youll be able to compromise agreements if for instance youve issued a claim in the employment tribunal or the court and your employer wants to settle that dispute by paying you a sum of money you may also be offered a compromise agreement even if youve just raised a grievance about a matter and your employer wants to nip it in the bud weve seen in recent years and increasing employers wanting employees to sign compromise agreements even before pain and a redundancy payment well if youre an employee you want a compromise agreement to make sure that your employer is legally obliged to pay you a sum of money in settlement or in compensation for a complaint that youve made against them from your employer from your employers point of view its its slig