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

The WRC ruling in Andrea Myers v. Clay Youth Project CLG highlights that compromise agreements waiving statutory rights are only valid if employees are given a genuine opportunity to seek independent legal advice. Employers cannot rely on broad “full and final settlement” clauses without ensuring procedural fairness. For employees, this reinforces the importance of consulting a solicitor before signing such documents. For employers, best practice is to provide clear written notice, reasonable time for advice, and transparency on rights being waived. Failure to do so risks the agreement being declared invalid and leaves disputes open to litigation.

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.

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