A settlement agreement is a legally binding contract made between an employer and employee where both parties are in mutual agreement over the terms set out within the contract. This is often used to resolve employment disputes or to end an employment on agreed terms.
A settlement agreement can give employees more certainty around what they will receive when their employment ends, especially in situations such as redundancies or grievance. When it comes to employers, it can offer them more reassurance that certain claims made are not be held against them in the future.
If you’re in the process of signing an agreement then it is very important to seek legal advice before agreeing to the terms.
Formerly known as compromise agreements, a Settlement Agreement sets out the terms and conditions agreed between an employer and employee and creates a legally binding contract that resolves a dispute and/or ends the employment relationship.
Settlement Agreement’s offer certainty for both parties. You will know exactly what you will receive upon termination and your employer has the assurance that they will not face an Employment Tribunal claim.
Following an employment dispute, your employer may provide you with a written offer which may come with a deadline for acceptance. Therefore, it is important to get legal advice as soon as possible to understand your rights and whether the offer is a fair reflection of your circumstances.
At Fairmont, our experienced employment law solicitors will guide you through every stage and help you to understand you rights right through to getting you a positive outcome in a few simple steps
A drafted settlement agreement will often come with a deadline to respond back to your employer, so, you’ll need to get in touch with us as soon as possible. We’ll ask you to send us a copy of your settlement agreement so that we can take time to review it to ensure you’re get the best possible outcome.
Once we’ve carefully reviewed the agreement, we will arrange a telephone appointment for you with one of our dedicated Employment Law Solicitors. We’ll be able to help explain the terms of the agreement as well as advise you whether the terms are appropriate for your situation. In most cases, we can even negotiate the agreement with your employer.
Once you are happy with the terms, we can help you finalise the agreement by ensuring they are signed and returned to your employer within the deadline.
Once the settlement agreement has been signed by you and your employer, it becomes a legally binding contract. Should your employer then fail to agree to the terms, our team can advise you on the next steps and offer you with further assistance where required.
In the unlikely event that you face any issues or if your employer fails to make payment, we will be more than happy to assist further.
A settlement agreement can offer more than just financial compensation to. You may be able negotiate other terms in relation to your notice, outstanding holiday and even the wording of a reference for future employment. By having such agreements in place, this can offer employees greater certainty and help protect your reputation when applying for new roles.
At Fairmont, our experts on employment law can help review the terms of the agreement to determine where improvements and negotiations can be made with the employer. This is why it’s important to seek legal advice to ensure you understand your rights and receive a fair outcome.
In most cases, your employer will often contribute towards the costs of getting independent legal advice for your settlement agreement which is usually included within a clause on the agreement. At Fairmont Legal, we offer a fixed fee for settlement agreement advice of £500 plus VAT. This can be paid directly by your employer if they are providing the contribution. Our fees are complete transparent from the outset, so you know exactly what it will cost.
If you’ve been presented with a settlement agreement and are not sure what to do, contact Fairmont Legal today for your free initial advice. Our advanced experience in Employment Law can help protect your interests and negotiate the best possible terms of your settlement agreement.
