THIS AGREEMENT is dated ....................................20... and is made

BETWEEN:

(1) [        ] LIMITED/PLC whose registered office is at [      ] ("the Company"); and
(2) [         ] of [           ] ("the Employee").

WHEREAS:

(A) The Employee's employment with the Company terminated on [               ].

(B) The Company is entering into this agreement for itself and as agent for all its Associated Companies and is duly authorised in that behalf.

IT IS AGREED as follows:

1. Termination of employment

1.1 The Employee's employment with the Company under the terms of the Contract of Employment terminated on the Termination Date.

2. Compensation for loss of employment

2.1 Subject to the Employee’s compliance with his obligations under this agreement, the Company shall, without any admission of liability, pay to the Employee the sum of £ [          ] ("“the Compensation Payment) [subject to the deduction of such tax and/or national insurance contributions as the Company is required to deduct by law.] [The first £30,000 of the Compensation Payment will be made without deduction of tax and national insurance.

2.2 Any liability to tax on the Compensation Payment and on any other benefits provided to the Employee pursuant to this agreement shall be the Employee’s alone.

3. Acknowledgement

3.1 The Employee acknowledges that he has been paid his salary and received all his contractual benefits up to the Termination Date.

4. Reference

4.1 The Company agrees to provide a written reference for the Employee to prospective employers in the terms set out in Schedule 1.

5. Tax Indemnity

5.1 If the compensation payment has been paid without the deduction of tax and national insurance, the compromise agreement may include a clause entitling the Company to recoup any income tax and national insurance liabilities from the employee. However, companies are often reluctant to be left in a situation where they have to recoup money from a former employee that they may be unable to find or the former employee may not have any money to pay the Company.

6. Post Termination Obligations

6.1 Companies often try to include clauses in the Compromise Agreement that the Employee keeps the terms of the Compromise agreement confidential and the Employee does not make derogatory remarks about the Company, it’s Employees or Directors. Employees often ask for similar clauses about the company. However, these clauses are often difficult to police or enforce if broken.

7. Legal expenses

7.1 The Company shall on the production of an appropriate copy VAT invoice pay to the Employee’s solicitors, Employment Law Solicitors Direct, up to the sum of £[   } plus VAT in respect of the Employee’s legal expenses. A compromise agreement is only valid if the Employee has been advised by a qualified adviser, who is usually a solicitor. It is standard practice for Companies to pay the legal costs the Employee incurs in getting advice about the terms of the Compromise Agreement.

8. Claims against the Company

8.1 The Compromise Agreement should set out the claims which the Employee believes that he may have against the company.

8.2 The terms of this agreement are in full and final settlement of all claims (if any) whether contractual, statutory or otherwise and whether under English or European Union law (including but not limited to the Employee’s claims set out in clause 8.1 above) which the Employee has or may have against the Company or any of its Associated Companies or their respective shareholders, officers or employees arising out of or in connection with his employment or its termination save for any claims for personal injury or loss of accrued pension rights.

8.3 The Employee agrees and warrants that save for any personal injury claim or claims in respect of accrued pension rights the claims and prospective claims as set out in paragraph 8.1 above are all the claims or prospective claims that he believes that he has against the Company or any of its Associated Companies or their respective shareholders, officers or employees arising out of his employment or its termination. The Employee confirms that he enters into this warranty having taken legal advice on the claims and potential claims that he may have.

8.4 The Employee represents and warrants that:

8.4.1. he has received independent legal advice from a relevant independent adviser (as defined by sub-section 203(3A) Employment Rights Act 1996) as to the terms and effect of this agreement and in particular its effect on his ability to pursue his rights before an Employment Tribunal. The name of the relevant independent adviser who has so advised the Employee is Mr Employment Law Expert of Employment Law Solicitors Direct.

8.4.2. the Employee is advised by the relevant independent adviser that there is in force and was, at the time he received the advice referred to above, a policy of insurance covering the risk of a claim by the Employee in respect of loss arising in consequence of that advice.

8.4.3. The Company and the Employee agree and acknowledge that the conditions regulating compromise agreements contained in section 203(3) Employment Rights Act 1996; and

8.4.4. The Company has entered into this agreement in reliance upon the Employee's agreement to clause 8.4.1. above and in reliance upon the warranty given in clause 8.3 above. In the event that the Employee brings any claims or proceedings (whether statutory or otherwise) against the Company or any of its Associated Companies or their respective shareholders, officers or employees (whether in any Employment Tribunal, the High Court, a County Court or otherwise) which he has agreed to waive under clause 8.2, the Employee agrees that he will repay to the Company the Compensation Payment referred to in clause 3.1 above and this shall be recoverable by the Company as a debt.

9. Whole agreement

9.1 This agreement sets out the entire agreement between the parties and supersedes all prior discussions between them or their advisors and all previous statements, representations, terms and conditions, warranties, guarantees, proposals, communications, and understandings whenever given and whether orally or in writing.

SIGNED for and on behalf of )

                                           ).....................................................

SIGNED by                          .....................................................