Settlement Agreements for Employment
Understanding Settlement Agreements for Employment
If you have received a settlement agreement from your employer, our team of specialist settlement agreement solicitors are here to help you understand the terms and secure the independent legal advice you need.
Employers usually offer a settlement agreement to an employee when the employment relationship is coming to an end, or when there is a workplace dispute they want to resolve without the time and cost of an employment tribunal.
What is a settlement agreement?
A settlement agreement is a contract between you and your employer and often includes a termination or severance payment in exchange for your agreement not to bring any claims against your employer arising out of your employment.
How do settlement agreements work?
A settlement agreement must be in writing and include a few legally required clauses. In order for a settlement agreement to be legally binding, you must receive independent legal advice on the terms of the settlement agreement and the effect that the settlement agreement will have on your ability to bring claims against your employer - and that’s where we can help. Taking settlement agreement advice from a qualified employment solicitor is not just sensible, it is a legal requirement before the agreement can take effect.
Do I have to sign a settlement agreement?
No. Your employer can’t force you to sign a settlement agreement. However, a settlement agreement can often be beneficial to employees as a quick and amicable way of bringing the employment relationship to an end in return for a sum of money. Before you decide whether to accept a settlement agreement, it is worth having a solicitor check that the offer is reasonable and that you are not signing away valuable rights.
How Can We Help?
We explain the terms of the settlement agreement to you, so that you understand exactly what they mean.
If we see any problems with the settlement agreement or consider that the financial offer that your employer has made to you is not good enough, we can negotiate changes on your behalf.
Frequently Asked Questions
In most cases, the cost of your settlement agreement solicitor is covered by your employer. It is very common for your employer to contribute towards your legal fees as part of the settlement agreement terms. We will always try to work within this amount. If we think that our costs will be more than your employer’s contribution (for example because you want us to negotiate the financial package or the terms of the agreement on your behalf), then we will always discuss this with you before we do that work.
For more information on settlement agreements or for specialist employment law advice, please contact us using the links below.
Contact Us
Speak to our specialist employment law team for tailored advice on settlement agreements. Contact Darren Tibble, Head of Employment.
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