For employees to sign away their rights to sue their employer for breach of their statutory employment rights validly, the requirements for Compromise Agreements in s.203 Employment Rights Act 1996 must be complied with in full. The requirements are strict and detailed.

The EAT have considered who decides if a Compromise Agreement is valid and has decided that Employment Tribunals do have jurisdiction to determine whether Compromise Agreements are valid. They may be invalid, for example, because the requirements of s.203 have not been complied with or because the employee has been induced to enter the agreement following a misrepresentation on the part of his/her employer.