Settlement agreements are binding agreements between employers and employees. They settle, or compromise, any claims the employee may have against their employer on the payment of a settlement sum.
They are often used in redundancy situations where employers pay enhanced redundancy pay. They are also used in situations where the employment relationship has become strained, or there is a threat of a claim, and both parties agree to part company on mutual terms.
If you are provided with a settlement agreement, you will need to get independent legal advice on the terms of the agreement and to ensure it is a reasonable offer taking into consideration your particular situation. The employer will usually cover the cost of this advice in the terms of the settlement agreement itself.
If you are offered a settlement agreement, give us a call to arrange an appointment and we'll take you through the detail and assist you in making the right decision.
We can also help if you are in a position where you would like to propose a settlement with your employer with a view to leaving the business. We are skilled in negotiating settlement packages and obtaining good results for employees where they have faced difficulties at work or have potential claims. We are always happy to have an initial chat to discuss your position.