A settlement agreement is a legally binding contract made between an employee and employer. It usually sets out the terms governing the termination of employment between the parties. When an employee enters into a settlement agreement, they would generally obtain a termination payment and in return agree to not commence a legal claim against their employer. A settlement agreement can assist businesses in obtaining some finality to potential disputes by agreeing various settlement terms with an employee.
A settlement agreement may be offered in the course of employment to bring a clean, cost-effective and sometimes amicable end to a contract of employment. Whilst not all settlement agreements are provided in the event of a dispute between an employer and employee, they are most often provided when disputes occur or are potentially about to occur.
We can assist businesses in drafting settlement agreements and advising on the best way to negotiate the terms of settlement with employees.
We can assist employees of businesses who wish to understand their rights under such an agreement and whether to sign such an agreement. Quite often, the employer would cover the costs of obtaining such legal advice.
Our solicitors can assist businesses and employees with a 24 hours service on reviewing and advising on settlement agreements.