What is a Settlement Agreement?

A Settlement Agreement is an agreement used to settle employment claims which you may have against your employer.

Normally, employment is terminated under the Agreement and a financial package is offered to you, in return for settlement of your claims.

There will usually be other clauses in the Agreement, e.g.

  • your employer promises to provide an agreed reference about you
  • neither party will make derogatory comments about the other and
  • both parties will keep confidential the existence of the Agreement and its terms.

Independent legal advice

If you are offered a Settlement Agreement which you wish to sign, you will need to take independent legal advice on its terms.

Your employer will normally pay a contribution towards your legal costs for this advice.

If you come to us, we will advise you on whether you are getting a fair deal, bearing in mind the value of your claims and entitlements. In some instances, we may be able to achieve a better deal for you, by negotiating on the terms with your employer.

Can only the employer make an offer of a Settlement Agreement?

Usually, it is the employer who makes an offer of a Settlement Agreement. However, if you want to broach the possibility of entering into a Settlement Agreement, we can approach your employer about this, on your behalf.

What are the advantages of entering into a Settlement Agreement?

Some of the advantages of a Settlement Agreement are that:

  • it is usually quicker and cheaper than making a claim in the Employment Tribunal and
  • you have a predictable outcome, compared to initiating Employment Tribunal proceedings.

If you need any help, please give Julia Woodhouse a call on 01926 831231 or email her at jhw@blytheliggins.co.uk.

The above does not provide you with advice.

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