Settlement Agreement

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

What Is A Settlement Agreement?

The main features of a Settlement Agreement are:-
Legally binding
Waive the individuals rights to bring any claim covered by the agreement
Employee usually receives some form of financial payment and will often receive a reference
Entirely voluntary
Often reached after a process of discussion and negotiation – which is usually confidential

Settlement Agreement Solicitor

One of our specialist employment solicitors 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.