Settlement agreements

Settlements Agreements (formerly Compromise Agreements) are formal documents that allow an employer to terminate an employees contract without following a disciplinary or redundancy procedure.

The main features of the Agreement are:-

• They are legally binding
• They waive the individuals rights to bring any claim covered by the agreement
• The employee usually receives some form of financial payment and will often receive a reference
• They are entirely voluntary
• They are often reached after a process of discussion and negotiation
• Negotiations about Settlement Agreements are often confidential

We can offer assistance in:-

• Drafting the Agreement
• Discussing the amount of any ex gratia payment and the tax treatment of payments
• Ensuring the agreement contains the necessary clauses to protect your business interests
• Ensuring that the procedures that are necessary to allow the agreement to remain confidential are followed

Agreements that are poorly drafted or imposed in circumstances that a Tribunal might consider as being under duress or unreasonable can defeat the purpose of the Agreement which is to bring an employee’s contract to an end by agreement whilst protecting the employer from the threat of future action Settlement Agreements may not be suitable in all cases.

We can advise on different methods of dealing with redundancy, grievance or disciplinary issues and offer a mediation service to assist with difficulties that arise within the workplace between employees.

For an initial free consultation in relation to these issues please contact Ashley Harkus or click on the Contact Us link.