What are Settlement Agreements?
Settlement Agreements (formerly known as a compromise agreement) are legally binding agreements under which you, the employee, agree to settle your potential employment claims with your employer, in return for financial compensation. Settlement Agreements are then treated as a contract.
Do I have to see a solicitor?
For a Settlement Agreement to be valid they must, amongst other things, be in writing and you must have received legal advice from a relevant independent adviser (for example, a qualified lawyer (i.e. employment solicitor) or union official) on:
- the terms and effect of the proposed agreement; and
- its effect on your ability to pursue any rights before an employment tribunal.
This is designed to protect you, to ensure that you do not inadvertently agree to something that is not in your best interests.
What advice and support will I receive?
Whilst some will only discuss the terms and the impact, we will go further than this. We want to understand what has happened to you, and then we can also give you a general idea of how reasonable the financial package is, in your personal circumstances.
We know that this isn’t simply a paperwork exercise, this is a big change in your life, for whatever reason, and it needs proper care and consideration.
What will the Settlement Agreement include?
Settlement Agreements do vary but usually there will be:
- financial compensation
- a contribution to your legal fees
- a waiver of claims by you
- clauses dealing with confidentiality, restrictive covenants and company property
- an indemnity from you in relation to tax and National Insurance
What Next? How Can We Help You?
If you would like help negotiating your financial package or need advice on the Settlement Agreement. Please get in touch.
If you want to hear what other clients from around Guildford, Godalming & the surrounding area have said about the support we give them with their Settlement Agreement please read our testimonials.
If you need help drafting a Settlement Agreement as an employer, please do see here.