Settlement Agreements.

At the end of an employment relationship, it is common for an employer to offer to pay a sum of compensation to an employee in return for which they ask them to sign a settlement agreement (previously known as compromise agreements) under which they waive all their employment rights against the employer.

There are certain formalities to comply with in order to ensure that the agreement is valid, one of which is that you take independent legal advice.

When considering whether you should settle with your employer, it’s all about reaching a resolution of an issue that’s right for you. We’ll analyse the situation for you, identify any potential claims and be able to advise you on the pros and cons of settling.

We will ensure that the terms are tailored to your particular circumstances and, where appropriate, negotiate for better terms to reflect the value of any claims or other requirements which you might have.

As the employer will be asking you to enter into an agreement, it is usual for them to make a contribution to your legal costs. We will advise you of our costs estimate at the start of the matter so that you know exactly where you stand and, if necessary, can seek an additional contribution from your employer.

In some situations, such as large scale voluntary redundancy exercises, employers offer settlement agreements to a number of departing staff. We are experienced in acting as the independent legal adviser to groups of staff in these circumstances, liaising with the employer collectively, whilst ensuring we are always acting in the best interests of each individual employee.

Useful Employment Website Links

Acas Codes of Practice on settlement agreements

Acas Guidance on settlement agreements

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