What is it?
Settlement agreements (previously known as compromise agreements) are used by an employer and employee to agree terms of a termination from employment or to resolve an employment dispute.
In order for a settlement agreement to be legally binding, an employee must take independent legal advice before signing the agreement. The legal costs for that advice are paid for by the employer.
Do I qualify?
Employers may prepare settlement agreements for reasons such as redundancy, negotiating terms of exit from employment, to settle potential employment tribunal claims, or to avoid a formal disciplinary or grievance process.
Under the terms of a settlement agreement, the employee agrees not to bring a claim in the employment tribunal for the claims covered by the agreement.
Here to help
A settlement agreement will include details of the amount of compensation to be paid, the termination date, confidentiality and termination obligations, a list of the claims waived and an agreed reference. The exact terms will depend on the circumstances involved.
We will be able to give you impartial and practical legal advice on whether signing the settlement agreement is in your best interests. In particular, we will explain the effect of the agreement on your ability to bring a claim in an employment tribunal, ensure that you receive fair compensation and provide you with an understanding of the implications of signing the agreement.