A Settlement Agreement is a legally binding contract between an employer and employee and is usually used to terminate employment on mutually agreed terms.
Unfortunately, sometimes things go wrong in the working relationship and often it is worthwhile considering the termination of employment by mutual agreement as an alternative to going through a stressful and time-consuming disciplinary, grievance or redundancy process with your employer. This contract is called a Settlement Agreement.
Under the terms of a Settlement Agreement, you will receive an enhanced financial package which will generally include a tax free termination payment, notice pay, holiday pay and any other sums due. In return, you agree to waive your rights to bring a claim against your employer, such as unfair dismissal, wrongful dismissal or discrimination.
A Settlement Agreement offers the benefit of certainty and a clean break between an employer and employee. The employee will have the security of a financial package and often a standard, written reference for future employers. The employer has the guarantee that it will not have to deal with any employment tribunal claims from the employee in the future.
You are under no obligation to accept the terms of a Settlement Agreement and an employee is always required to seek independent legal advice on the terms and effect of the agreement before signing it. The agreement must be kept confidential between the parties.
You must seek independent legal advice on the terms of the Settlement Agreement and your employer will usually contribute to your legal costs in doing so. We are usually able to adjust our service to fit the employer’s contribution to fees but if the offer is not fair or the agreement requires negotiating then we can offer a variety of pricing options such as fixed fees, hourly rates and no-win no-fee arrangements. Please speak with our team further to discuss what funding options may be best for you.
How can we help you?
If you have been offered a Settlement Agreement, please contact our Employment Law Team who have extensive experience in advising on and negotiating Settlement Agreements on behalf of employees. We can turn around your Settlement Agreement within expected deadlines and usually within the legal costs contribution from your employer, unless extensive negotiation is necessary to improve your terms. We will always ensure the final agreement reflects the best possible outcome and settlement terms for you.
Please contact our team on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be in touch.