A Settlement Agreement (sometimes referred to as a Compromise Agreement) is sometimes given to an employee who is being made redundant. The agreement sets out the terms of the settlement. Usually, the employee is given money in return for agreeing to certain things such as not bringing a claim against the employer in the Employment Tribunal.
A Settlement Agreement can also be used where an employee is performing badly or is guilty of misconduct and the employer wants to settle the case without the risk of a claim being brought before the Employment Tribunal.
The employer will want to include everything necessary to protect his position. Sometimes there will be provisions to prevent the employee working for a competitor or accepting employment within a certain distance of his former workplace. If accepted, this can restrict your future employment options.
It is a legal requiremen that the employee should obtain independent legal advice on the Settlement Agreement and the advisor will need to sign. This right cannot be waived.
If you are an employee who has been asked to enter into a Settlement Agreement please contact us for advice. Sometimes we can help you negotiate better terms. In all cases we will advise you about the obligations that you are being asked to enter into.
For an initial discussion about how we can assist you organisation it address any of the above an other employment law issues, please contact any of our offices or send us a message using the contact form on the right of this page and we will get back to you as soon as possible.
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