Are you looking for legal advice on a settlement agreement?
What is a settlement agreement?
A settlement agreement is a legally binding agreement between an employer and an employee when it has been agreed that the contact of employment should come to an end. This often follows on from where there has been a protected discussion between employer and employee.
In most cases the settlement agreement benefits both parties as it offers a structured conclusion to their relationship on terms that are mutually acceptable, avoiding a potentially stressful and expensive legal dispute.
Once the settlement agreement is signed, the employee loses their right to go to an employment tribunal. It is therefore a requirement for the employee to receive independent legal advice for the agreement to be legally binding.
Employers will usually pay the employee’s costs of obtaining that advice from a solicitor.
What are the main components of a settlement agreement?
Not all settlement agreements are the same, though there are certain terms that feature in most documents.
For instance settlement agreements generally contain a confidentiality clause, with obligations on both sides to respect confidential information, including the terms of the agreement.
Another common clause is one dealing with the written reference that will be provided to any prospective employer.
Agreements also deal with the financial terms of settlement, detailing any compensation that the employee will receive, along with payments in lieu of notice, holiday pay etc.
What the employee needs to do.
If you have been invited to enter into a settlement agreement then you will need to appoint someone to give you the legal advice that is required.
Bear in mind that the agreement is not legally binding until both parties have signed it, so there is room for negotiations to take place before it is completed.
We have a team of solicitors who are experienced in advising employees on settlement agreements. As explained, the employer will usually pay your legal costs. This is generally dealt with in the agreement itself, but if there is uncertainty we will be happy to contact your employer to get clarification.
So, if you need legal advice on a settlement agreement then give us a call on freephone 0333 888 0404 or send a brief email to [email protected]