We are happy to advise anyone who has been offered, or wishes to offer, a Settlement Agreement.
It is a legally binding agreement between employer and employee which brings employment to an end. The law now gives much greater scope to offer these agreements to terminate the relationship provided the employee is given a reasonable amount of time (14 days) to think about the offer, is not placed under unfair pressure and has not been discriminated against.
The Agreement usually provides for a severance payment, in return for which an employee agrees not to pursue any claim or grievance they may have in an Employment Tribunal, thereby ‘contracting out’ of their employment law rights. In order to be valid, the employee must take independent legal advice from a lawyer on the agreement and the employer is expected to pay for part or all of the cost of this.
Settlement Agreements should ensure that an employee is compensated fairly while at the same time protecting the employer from any future claims. It is therefore essential the agreement is drafted correctly and reflects everything that is agreed between employer and employee to terminate employment.