This Agreement for Compromise is an attorney drafted agreement specifically tailored to
be between an employer and an employee. The agreement provides that an employee
will receive a certain amount of compensation from the employer in exchange for the
employee's agreement to waive any further claims against the employer for any breach
of a statutory or contractual obligation by the employer. This agreement further
provides that the employee's employment at the company will terminate on a specified
date. This document is fully customizable to fit the needs of an employer in any
circumstance where a compromise is necessary.
AGREEMENT FOR COMPROMISE CONTRACT
THIS COMPROMISE AGREEMENT (the “Agreement”) entered into this ____ day of
_________, 20_____, by and between ____________ (the “Company”) and _______________
(the “Employee”).
WHEREAS, the Employee is/was employed by the Company as a/an
__________________ [GIVE JOB TITLE OR DESCRIPTION] under the terms of an
Employment Contract between the Company and the Employee (the “Contract”) dated the ____
day of _______, 20____;
AND WHEREAS, pursuant to the terms and conditions of the Contract, the Employee’s
employment with the Company will terminate on the ___ day of ________, _____ (the
“Termination Date”);
AND WHEREAS, the Company and the Employee desire to enter into this Agreement to
provide for the settlement of any claims that the Employee may have or will have against the
Company arising out of the Employee’s employment with the Company and the termination of
the Employee’s employment with the Company.
NOW THEREFORE, in consideration of the premises and of the mutual covenants and
agreements contained herein, the Company and the Employee hereby agree as follows:
1.00 TERMINATION
1.01 The Company and the Employee hereby agree that the Employee’s employment with the
Company shall terminate effective the Termination Date.
2.00 SALARY
2.01 The Company hereby agrees that it shall pay to the Employee, within ____ ( ) days of
the execution of this Agreement, any and all outstanding salary owing to the Employee,
including any vacation pay accrued to the date of this Agreement, except for any all applicable
statutory deductions.
2.02 The Company hereby agrees that it shall maintain all life insurance policies and health
care coverage, including dental coverage for the Employee, if applicable, up to and including the
Termination Date.
2.03 Subject to the Employee fulfilling his or her obligations as contained herein, the
Company hereby agrees that it shall pay to the Employee severance pay as compensation for the
Employee’s loss of employment with the Company, without the Company’s admission of any
liability. The Company shall pay such severance pay to the Employee within _____ (___) days
of the execution of this Agreement. Such severance pay shall be reduced by any and all
applicable statutory deductions.
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3.00 COMPANY VEHICLES
3.01 The Employee hereby agrees that he/she shall return any and all company vehicles to the
Company on or before the Termination Date. The Employee agrees to return such vehicles to
the Company in good condition, together with all keys for such vehicles.
4.00 RESIGNATION AS AN OFFICER OR DIRECTOR
4.01 Upon the execution of this Agreement, the Employee hereby agrees that he/she shall
resign from any office the Employee holds with the Company as an officer or director. The
Employee further agrees that he/she shall also resign from any office the Employee holds with
any of the Company’s affiliate companies and shall deliver to the Company or any affiliate
companies, the Employee’s resignation as an officer or director in the form annexed hereto as
Schedule “A.”
4.02 The Employee hereby agrees that he/she shall do all such acts and things as the Company
may require to effect the Employee’s resignation from all offices the Employee may hold,
immediately upon written request from the Company or any of the Company’s affiliates.
5.00 CONFIDENTIALITY
5.1