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In Brief - Compromise Agreements and the Equality Act

24 May 2012

Section 147 of the Equality Act 2010, which came into force on 1 October 2010, was drafted in such a way that a literal interpretation meant that an employee’s own solicitor would not qualify as a relevant independent adviser in relation to a compromise agreement. Previously, only an adviser to the other party was excluded.

The Government has now taken steps to clarify the position. From 6 April 2012, the Equality Act 2010 (Amendment) Order 2012 makes amendments to Section 147 to make it clear that a complainant’s legal adviser is not precluded from being an independent adviser for the purpose of ensuring that they fully understand the terms and effect of a compromise agreement.

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