Settlement Agreements

A Settlement Agreement is a written document between an employer and an employee, where:

  • The employer pays you, the employee, a sum of money in exchange for terminating your employment
  • You also agree to not bring any future claims against the employer in an Employment Tribunal or court, regarding your employment or your termination.

You cannot legally sign a Settlement Agreement on your own. You must get advice from an independent solicitor before you (and the solicitor) sign the Settlement Agreement and return it to your employer, otherwise, the agreement is not legally binding.

Your employer is likely to make a contribution, or pay in full, your legal costs in getting this independent legal advice. In many cases, we can send the bill directly to your employer to pay, saving you any out-of-pocket costs. If legal costs are incurred over and above the contribution paid by your employer, we will have to invoice you for the remaining balance.

If you are happy with the financial offer in the Settlement Agreement, this is a quick process of simply going through the Settlement Agreement with you and signing it off.
If you are not happy with the financial offer in the Settlement Agreement, we will advise you on your options and whether you should go back to your employer with a counter offer.

In all Settlement Agreement cases, we will:

  • Discuss the background to understand why there is a Settlement Agreement being offered
  • Advise you on the wording of the Settlement Agreement – clause by clause, so you understand fully what you are signing
  • Advise if you may have a potential Employment Tribunal claim that you would be signing away
  • Review the financial offer you would be paid per the Settlement Agreement
  • Advise if the Settlement Agreement is a good deal for you, whether you should sign it or go back with amendments or a counter offer

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