What is a settlement agreement?
A settlement agreement (formerly known as a compromise agreement) is a formal written contract between an employer and an employee. It is legally binding and can be used to resolve a dispute or end employment. A settlement agreement is voluntary and stops an employee from bringing claims against an employer to an employment tribunal or court. The employee (or former employee) usually receives some form of financial payment and will also often receive a reference as part of the agreed terms.
The terms within a settlement agreement are mutually agreed and parties do not have to accept the terms initially offered. An agreement is often reached through a process of discussion and negotiation.
When is a settlement agreement used?
Settlement agreements are often used in situations where an employer and employee feel that their employment relationship is no longer working and a ‘clean break’ is the best way forward or can also be used to settle a workplace dispute.
Do I need legal advice on a settlement agreement?
For a settlement agreement to be valid, you must have taken independent legal advice. If you sign a settlement agreement without getting independent legal advice first, you will still be able to go to an employment tribunal, and so most employers will pay a contribution or all of your legal costs. A legal adviser can also ensure you know how much you are entitled to and make sure you are getting a fair deal.
Same-day settlement agreement advice
We know that when presented with a settlement agreement, you will want advice quickly to ensure your agreement is fair and you have effective and focused advice to achieve the best outcome for your situation. We offer fast settlement agreement advice and will always aim to start the process within the same day we receive your settlement agreement enquiry. There is no need to visit our office, we can offer comprehensive advice wherever you are over the phone or via video call, at a time that suits you.
Our solicitors are experienced in offering settlement agreement advice and negotiating terms to ensure you receive the best deal.
Send us your settlement agreement today to find out how we can help