Advice on Settlement Agreements
If your employer has offered you a settlement agreement to terminate your employment, you will need to get legal advice before signing it. Our employment solicitors regularly advise clients on settlement agreements and would be happy to help you. In the majority of cases, our fees are paid in full by the employer.
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What are Settlement Agreements?
A settlement agreement will usually contain a waiver of any claim for breach of contract as well as statutory claims. Each agreement should be tailored to meet the circumstances of each individual case, and that’s why it’s difficult to adopt a one-size-fits-all approach to drafting a settlement agreement, and that is why we recommend you consult a solicitor whenever you are asked to sign an agreement.
Benefits of a Settlement Agreement
- The advantage for the employer is that they are able to draw a line under an employee’s departure or complaint and are protected from future claims.
- The advantage for the employer is the consideration, such as a financial sum, received in return is provided for by a legally-binding contract.
In addition to confidentiality clauses, a settlement Agreement may also include an agreed reference. A breach of the agreement and any financial loss that breach may incur for the other party can result in further legal action.
We can help with Settlement Agreements
If you are an employee in need of a solicitor to check over a settlement agreement, or an employer who needs to have an agreement written up, then contact our expert solicitors today. We have helped dozens of businesses and individuals over the last seven years. Our expert employment law solicitors are ready to help.
A settlement agreement is a legally binding contract between an employer and employee, often used to end employment on mutually agreed terms. It typically includes a waiver of claims, meaning the employee agrees not to pursue further claims against the employer in exchange for benefits, such as compensation. Settlement agreements help to formalize the terms of separation and provide clarity for both parties.
The amount of compensation offered in a settlement agreement varies and depends on factors like your length of employment, the reason for termination, and any contractual entitlements. A solicitor can help negotiate fair compensation and assess whether the offer aligns with industry standards and your entitlements.
Yes, UK law requires employees to obtain independent legal advice before signing a settlement agreement to ensure they understand the terms and implications. A solicitor will review the agreement, protect your rights, and ensure that the terms are fair and in your best interest.
If either party breaches the terms of a settlement agreement, legal action may be an option. A solicitor can provide guidance if you believe a breach has occurred, helping you to pursue or defend claims as necessary.
Typically, employers contribute to or cover the cost of legal advice for the employee, as independent legal advice is required for the agreement to be valid. Your solicitor can help confirm these arrangements with your employer.
Receiving compensation through a settlement agreement can affect eligibility for certain benefits. It’s advisable to consult with a solicitor or financial advisor to understand how the agreement may impact any benefits you’re receiving.