EMPLOYMENT LAW – SETTLEMENT AGREEMENTS

A settlement agreement (also known as a compromise agreement) is a legally binding contract between an employer and an employee which is usually used to end an employment on agreed terms.

A valid settlement agreement will prevent the employee from initiating certain current and future claims against the employer, usually in exchange for money (up to £30,000 of which may be tax free), sometimes other benefits, and usually a reference.

In order for a settlement agreement to be valid, the following conditions must be met:

• The agreement must be in writing;
• The agreement must relate to a particular complaint or proceedings;
• The employee must have received advice from a relevant independent adviser, such as a lawyer or a certified and authorised member of a trade union;
• The independent adviser must have a current contract of insurance or professional indemnity covering the risk of a claim by the employee in respect of loss arising from the advice;
• The agreement must identify the adviser;
• The agreement must state that the applicable statutory conditions regulating the settlement agreement have been met.

Our Solicitors act for employees leaving their employment by way of a settlement agreement to negotiate the best terms possible at a cost which would usually be met by the employer. We know how stressful leaving employment can be so we will keep you informed of your rights and what is best for you every step of the way.

We will provide you with free advice which will be easy to understand and we will ensure that the negotiated settlement agreement is right for you.

Both you and your employer have to stick to the terms of the settlement agreement so it is important that the terms of it are in your best interests.

A settlement agreement can also be used to resolve an ongoing workplace dispute, such as to stop treating you unlawfully, as opposed to simply ending an employment. If this applies to you and you require the help of our solicitors then please get in touch.

You do not need to live in the local area to benefit from our assistance; everything can be done over the telephone or by email from the comfort of your own home.