A settlement agreement (formally known as a compromise agreement) is a legally binding agreement between an employer and employee to settle a claim or refrain from initiating legal proceedings in relation to an issue arising out of their employment or its termination.
From an employer’s viewpoint it gives them the comfort of knowing an employee will not take any further legal action in relation to any dispute, whether potential or otherwise.
From an employee’s perspective it gives them the comfort of knowing their employer is legally obliged to pay them the settlement sum being offered.
Settlement agreements have become increasingly complicated over the years. Regardless of whether you are an employer who needs a settlement agreement drafting, or an employee who needs to take advice on a settlement agreement, it is vital that you take advice from a lawyer. At BSP Law, our lawyers are specialists in settlement agreements and act for both employees and employers. This means that as well as advising you on what’s included in your settlement agreement, we can also advise you on what’s been left out!
If you have been offered a settlement agreement to sign, please contact us first. We currently advise clients all over the UK, in person, over the telephone, or a combination of both.
Furthermore, the cost of advice under a settlement agreement will in the majority of cases be covered by your employer, meaning that you may not have to pay anything for this advice personally.
For more information, please call the employment team on 0161 834 2623.