A settlement agreement (sometimes known as a compromise agreement) is a mutually agreed termination of an employee’s employment contract. Under this type of agreement the employee agrees not to pursue a legal claim against an employer, and usually receives an enhanced redundancy payment. Settlement agreements can be a useful solution in certain circumstances, such as a workplace dispute, unfair dismissal or redundancy.
Here at Sheppersons Solicitors we deal with all types of employment law. We represent both employees and employers, so we can help you whatever your circumstances.
We offer a fixed fee initial consultation. Please contact us for more information.
Getting legal advice for a Settlement Agreement
Settlement agreements are often offered by employers when an employer wishes to terminate an employee’s contract of employment on enhanced redundancy terms. The employee may have a potentially valid claim against them, and could pursue the claim or go to an Employment tribunal.
Legal advice should always be sought before entering into a settlement agreement. Without independent legal advice being taken, an agreement may not be legally binding. A specialist employment lawyer will also help you to ensure that the agreement is suitable and fair to you.
The settlement agreement will usually consist of a financial payment being made to the employee in return for them withdrawing their claim and agreeing to take no further action against the employer.
The employer pays for the employee’s legal advice on a settlement agreement.