On 29th July 2013, the government changed the name of compromise agreements to settlement agreements.

Essentially both are the same, however whereas compromise agreements could only be offered if there was an ongoing dispute between the employer and employee, settlement agreements can be offered under any circumstance. i.e. the employer is able to offer this to the employee as a way to terminate employment without running the risk of the employee referring to any discussions of settlement, if they choose to make a claim against the employer and do not accept the agreement.

To emphasise this point. Prior to 29th July 2013, if an employer offered an employee a compromise agreement in a situation where there wasn’t any form of dispute between the parties, the employee could potentially have referred to any offers made in any claim made against the employer.