What is a Settlement Agreement?
A Settlement Agreement (also known as Compromise Agreement or a Redundancy Agreement) is an agreement ending statutory claims (for example unfair dismissal or discrimination) arising out of your employment its termination.
In a nutshell you have to go off and get independent legal advice before signing away your legal rights. We will advise you on any potential claims so that the employee fully understands the legal issues, and the value of any potential claims before making an informed decision. We often negotiate a better deal for our clients.
Common Questions regarding Settlement Agreements
- What is a Settlement Agreement and why should I sign one?
- Why do I need to see an employment solicitor before signing a Settlement Agreement?
- Do I have to pay to get advice on a Settlement Agreement?
- Should I accept the Settlement Agreement or ask for more money?
- Can payments made under a Settlement Agreement be paid free of tax?
- Can I get an agreed reference as part of the Settlement Agreement?
- Should I reject the Settlement Agreement Offer and bring a claim in the Employment Tribunal?
- What are common clauses in a Settlement Agreement?
As specialist employment solicitors we have advised scores of employees and helped them to get the best possible settlement. If you instruct us, as employment lawyers we will:
- Advise you on whether any claims arise on the termination of employment.
- If so, advise you what those claims might be worth.
- In the light of that information, advise you whether the sum offered is reasonable in the circumstances.
- Explain the meaning and effect of the agreement to you and advise you whether anything needs to be amended or changed.
- Negotiate on your behalf as required.
The cost of advice will often be covered by the employer, meaning that you may not have to pay anything for this advice personally.
See our Redundancy Calculator Tool.
Many employers fall into some very difficult traps when offering compromise agreements and the taxable position on severance payments is not always straight-forward. We are employment lawyers and solicitors based in Central London who can guide you through this difficult process, so call us now to discuss your situation.