Law Society warns solicitors to "exercise caution" over compromise agreements

The Law Society has advised solicitors who are dealing with compromise agreements that seek to conclude discrimination claims to “exercise caution in doing so”.

Chancery Lane said the Government Equalities Office (GEO) is considering options for clarification of s. 147 of the Equality Act.

This section sets out the requirements that must be fulfilled in order to have a qualifying compromise contract to settle claims arising under the Act.

“Most importantly, the complainant must receive advice from an 'independent adviser' about its terms and effect,” the Law Society said.

“Current drafting of the section suggests that a solicitor who was instructed by the employee prior to the production of the final agreement for consideration will be precluded from acting any further.”

The Law Society said it intends to publish a practice note shortly, once discussions with the GEO have taken place.

In October Chancery Lane requested an urgent meeting with the GEO amid concerns there was no way that compromise agreements under the 2010 Act could be made enforceable.