A Settlement Agreement is an agreement regulated by statute to bring to an end all and any statutory claims arising from your employment or the termination of your employment, as well as any other claims arising. To settle statutory employment claims, you cannot simply accept an offer in ‘full and final settlement'; you have to take independent legal advice first.
If your employer wishes to prevent you from bringing, or continuing, any statutory claims that have arisen or might arise from your employment or its termination, it is necessary to have a formal Settlement Agreement (previously known as a ‘Compromise Agreement’). The statutory claims that are being compromised by the agreement have to be specified in it. Statutory claims will include, for example, unfair dismissal, unlawful deductions from wages, sex, race, age or other unlawful discrimination.
Employers also use Settlement Agreements to settle other claims arising from your employment such as breach of contract and claims in negligence (for example personal injury claims).
Once a Settlement Agreement is signed by both parties, it will bring to an end your right to pursue the specified statutory claims and other claims arising from your employment or its termination in an Employment Tribunal or elsewhere (including for example the County Court or High Court).
If you work or live in or around London, in particular the City, Holborn or the West End, we can help. Call today to speak to a specialist employment law solicitor for advice on settlement agreements and redundancy. Reculver Solicitors. Holborn, London WC1V
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?