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Settlement agreements (also known as compromise agreements, severance packages or leaving packages) are becoming more and more commonplace in the workplace.
Settlement Agreements are used in a variety of different situations (e.g. where an employee is being made redundant or where there is a dispute between an employee and their employer). Employees who enter into settlement agreements usually agree to give up any claims that they may have against their employer in return for leaving their employment and receiving an agreed sum of money.
A Settlement Agreement is a legally binding contract and it is only valid if you receive your own independent legal advice. It is usually used to bring an employment relationship to an end and sets out in writing the agreed way the employer and employee will part ways. In most cases the employee will waive the right to bring a claim in a tribunal or court in return for the employer agreeing to pay them a sum of money and/or to provide a reference.
Settlement Agreements come in all different shapes and sizes, some are simple and can be dealt with in one meeting, whilst others are not so straightforward, and raise complex issues. It is important that we understand the circumstances which have led to the settlement proposal, so that we can advise you whether the proposal is fair, and whether it is in your interests to sign it. If it’s not, then we will work with you to find alternative solutions which give you the best possible outcome, which may include negotiating changes to the terms of the settlement agreement.
Whatever your circumstances, if you instruct one of our employment solicitors to handle your settlement agreement then you can take comfort from knowing that your solicitor will use all of their knowledge, skill and experience to secure the best possible outcome for you, whilst ensuring that you fully understand all options available to you and that you can make an informed decision. Our Employment Team has particular expertise in acting for high-level executives and senior employees who may be subject to clauses such as garden leave and restrictive covenants.
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