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A Settlement Agreement is a legally binding agreement between an employer and an employee which is entered into following a decision to part company.
Settlement Agreements are often used to resolve a dispute or deal with a redundancy situation.
While the terms of each individual Settlement Agreement differ, they generally involve the employee giving up the right to bring an employment claim against the employer in return for a financial payment or other benefits.
Settlement agreements often follow on from a protected conversation under section 111A of the Employment Rights Act 1996.
Because Settlement Agreements are legally binding, the employee is required to take independent legal advice before entering into one.
The employee’s legal advice is generally paid for by the employer, so it doesn’t normally cost the employee anything.
If you are an employee seeking independent legal advice on a Settlement Agreement then our specialist solicitors are here to help. Contact us for a free consultation.
