What is a Settlement Agreement?
A settlement agreement, formerly known as a compromise agreement, is a legally binding agreement that sets out the terms upon which your employment with your current employer is to be terminated. A settlement agreement, detailing the compensation to be paid to you for the termination of your contract, is drafted by your employer’s solicitor, which you are then asked to sign. Before you sign a settlement agreement, however, you are required to seek advice from a qualified employment law solicitor, who also has to sign such an agreement for it to be legally binding and for you to then receive any compensation under it.
The cost to you of seeking legal advice is usually fully, or at least partially, funded by your employer.
The compromise agreement solicitors at Farleys understand that this is likely to be a difficult time for you, and will provide you with clear advice on how to proceed. To speak to an employment law solicitor at Farleys, call 0125 460 6090 or email us today.
Why a Settlement Agreement?
A settlement agreement is often a preferable solution for both parties as the employer minimises the risk of any claim being brought against them. This is because by signing a settlement agreement, you waive your right to bring your employer to an Employment Tribunal at a later date for any matter relating to your dismissal.
Settlement agreements are also becoming a more popular option as a way of avoiding the lengthy, costly and stressful Employment Tribunal process, providing you with a clean break to carry on with your career or possibly to secure a reference from your employer in an agreed form.
Should I Sign a Settlement Agreement?
If you have been asked to sign a settlement agreement, you are required, by UK employment law, to seek advice from a qualified representative, such as an employment law solicitor.
The most important thing to remember with a settlement agreement is that by signing such an agreement, you legally accept the terms of the settlement and are prevented from bringing a claim against your former employer that could result in an Employment Tribunal.
If you feel that you have been unfairly dismissed, have been discriminated against, or that the severance package that is being offered to you is not fair or reasonable, an employment law solicitor will be able to advise you as to the best way to proceed. It may be that you choose not to sign the settlement agreement, or that you try to renegotiate the severance package that is being offered to you. An experienced employment law solicitor will be able to advice you of the best way to proceed.
Contact a Settlement (Compromise) Agreement Solicitor
If you have been asked to sign a settlement agreement, you should seek advice from an employment law specialist as soon as possible. The employment law solicitors at Farleys are experienced in guiding and assisting employees through the settlement agreement process and will explain everything to you in clear and plain terms. Contact a settlement agreement solicitor today on 0125 460 6090 or email us and we will respond as soon as possible.