If you are thinking of signing a settlement agreement (formerly known as compromise agreements) with you employer, it is important that you receive good legal advice on the terms of the agreement and what other legal options may be open to you. As specialist employment law solicitors we are highly experienced in advising on settlement agreements and successfully negotiate terms.
A settlement agreement is a contract which ends the employment on legally binding terms agreed between the employer and employee. When an employment comes to an end either because of redundancy or a disagreement, a settlement agreement is used to agree the terms under which the employee will leave their job. It usually involves the employee receiving financial compensation in return for agreeing not to take the employer to court. The employee will give up their employment rights, such as unfair dismissal.
You should be careful about agreeing to any terms before having all the facts about the end of your employment. It can be difficult to negotiate a figure upwards once you´ve agreed to it - even though the terms are not legal binding until you have taken independent legal advice on the settlement agreement. It is wise not to give any signal that you are prepared to give up your employment.
Unless you consider the offer is too good to turn down you should carefully listen to your employer in your initial meeting, then seek immediate legal advice before committing to anything. Our team of employment lawyers will:
If you have received a settlement agreement you will need to make sure you receive independent legal advice on it. Your employer usually covers the legal fees for your advice on the settlement agreement.
They could´t have been more helpful and understanding.
G Hinds - Stubbington