Compromise Agreements

The case of McWilliam & Others v Glasgow City Council is the first case to consider the criteria set out for a compromise agreement to be valid under the Sex Discrimination Act 1975.  This case looked at whether there was a need for the employee to have received independent legal advice as to the terms and effect of the proposed agreement.

The Tribunal held that all that was required was for the employee to be advised as to the terms of the agreement and what they mean.  It was not necessary for the employee to have received an assessment that the terms of the agreement were a ‘good deal` to allow the employee to make an informed decision.