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WRC Deems Compromise Agreement Invalid – Employees Should Have Opportunity To Take Legal Advice

Andrea Myers v Clay Youth Project Clg (ADJ-00056614) is a recent unfair dismissal case that was before the Workplace Relations Commission (“WRC”). The Complainant brought a complaint under the Unfair Dismissal Acts 1977-2015 (the “Acts”) claiming she had been constructively dismissed by her employer. However, in an interesting set of circumstances, the Complainant had signed a compromise agreement with her employer settling all claims prior to bringing the WRC action.

Background:

The Complainant was involved in a road traffic accident which resulted in her being absent from work for extended periods throughout 2024. Following her return to work the parties entered into discussions on a compromise agreement which was signed on 20th December 2024. The Complainant referred a complaint to the WRC just over a month later.

As a preliminary matter, the Respondent questioned the WRC’s jurisdiction to hear the case as the signed agreement was expressed to be in full and final settlement of all and any claims against the Respondent. The Acts were specifically mentioned in the agreement as one of the statutes under which the complainant would not pursue complaints.

Decision:

The Adjudicator found that the Complainant was not estopped from pursuing her complaint of constructive dismissal on the basis of the compromise agreement. The Adjudicator noted the signed compromise agreement included the following wording:

The employee hereby confirms that she has had the opportunity of taking legal advice on the provisions of this agreement and that she understands the effect and the implications of this agreement, and that she is signing this agreement voluntarily and without any duress whatsoever.”

The Adjudicator noted that as a matter of uncontroverted fact, the Complainant was not given the opportunity to take legal advice on the document.

The Respondent gave examples of prior case law confirming the position that validly executed compromise agreements will be upheld and the Respondent sought to rely on such case law.

The Adjudicator distinguished this case from the case law mentioned by the Respondent. For example, the Adjudicator noted that in the case of Angela Thompson v County Wexford Education Centre UD 581/2012, the Employment Appeals Tribunal had made specific reference to the fact the agreement itself was clear and that the claimant informed the Respondent that she had taken independent legal advice.

The Adjudicator engaged with the principles outlined in the other cases relied upon by the Respondent i.e. Healy v Irish Life Assurance (DEC E2015-002) and Sunday World Newspapers Limited v Steven Kinsella and Luke Bradley [2008] ELR 53. However, the Adjudicator determined that the references in the latter case to “appropriate steps” and “professional advice of an appropriate character before the agreement was signed” were fatal to the Respondent’s position in this case as the Complainant’s evidence was that she was not even shown the entire document, just the signature page, and that she was not allowed to retain a copy of it.

The Adjudicator accepted that there were “meaningful negotiations and discussions” in this case but stated that the requirement for “informed consent” is a critical one. On this point he commented, “If it can be shown that a party has waived their right to do so that will be a different matter, but it is not what happened here on the basis of the complainant’s uncontested evidence”.

Accordingly, the Adjudicator allowed the Complainant to proceed with her constructive dismissal claim against the Respondent notwithstanding having signed the Compromise Agreement.

Takeaway for Employers:

This case is an interesting look at how the WRC may deal with complaints that still make their way to hearing even though a settlement agreement was signed by the parties.

As it happens the Complainant in this case was ultimately unsuccessful in her constructive dismissal claim and received no WRC award. Nonetheless, the case should act as a warning for employers as it reinforces the principle that employees should be given an opportunity to take legal advice on any proposed settlement agreement in order for it to be enforceable.

Link – https://www.workplacerelations.ie/en/cases/2025/july/adj-00056614.html

Authors – Tara Kelly and Laura Killelea  

31st July 2025

Anne O’Connell Solicitors

19-22 Lower Baggot Street

Dublin 2.

www.aocsolicitors.ie



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