Why compromise agreements are not always the end of the story

Lawyers and HR practitioners will watch the case of Gibb v Maidstone and Tunbridge Wells NHS Trust (2009 EWHC 862 QB) with interest this week, heard by the Court of Appeal on 17 and 18 March 2010.The case highlights the importance of employers giving careful consideration to what amount is appropriate to pay departing employees. The appeal court will decide whether the High Court was right that a compromise agreement between the employer and the employee was void for being too generous and therefore outside the powers of the agreement (ultra vires).