What is a Settlement Agreement? A Guide For Employees and Employers.
Posted on in Employment Law
Recent legislative developments and the current economic climate have brought significant changes to employment law. As a result, questions surrounding future working relationships and the role of settlement agreements have become increasingly important.
Whether you are an employee who has been offered a settlement agreement or an employer considering this option, we understand that this can be a challenging and uncertain time.
We are seeing a significant increase in the number of employees being presented with settlement agreements. Whether you are an employer seeking a trusted firm to provide independent advice to multiple employees, or an individual looking for guidance on your own agreement, our experienced team is here to help.
What Is a Settlement Agreement and When Is It Used?
Settlement agreements are legally binding contracts designed to set out the terms and conditions agreed between an employer and an employee when bringing the employment relationship to a mutual close. In essence, a settlement agreement typically involves an employee waiving their right to bring a claim against their employer in return for a financial sum.
Do I Really Need Legal Advice?
In short, yes. Employees must have received advice from a relevant independent adviser on the terms and effect of the proposed arrangement, including its impact on their ability to pursue any complaints or proceedings before an employment tribunal or other court.
How Can Tozers Help?
We provide tailored legal advice to protect your interests – whether you’re an employer seeking to avoid a costly mistake or an employee trying to secure the best deal. We are expert employment lawyers with over 20 years of experience and a proven track record.
Employers: Protect Your Business with a Well-Drafted Agreement
- Minimise legal risk
- Avoid costly, stressful and lengthy court proceedings
- Protect sensitive business information
- Draft clear terms and conditions
- Conduct without prejudice discussions
- Negotiate terms directly with employees
- Ensure ACAS guidelines are followed
Employees: Ensure You Get a Good Deal
- Help you understand your rights
- Assist in negotiating more favourable terms
- Ensure legal compliance
- Explain the terms of the agreement and, more importantly, help you understand their consequences
How Much Will Advice Cost?
For employees, the cost of obtaining legal advice is usually covered by the employer, who will normally confirm from the outset how much they are willing to contribute. In some instances, the amount is a fixed fee.
If you would like to discuss the cost of this service further, feel free to call us on 01392 207020.
Client Feedback:
Here’s what our clients have to say about our service:
‘The service from Tozers has been outstanding! All correspondence has been prompt and my discussions have been spoken through step by step, so I was left feeling confident that the matter was in hand. Would highly recommend.’
Need Assistance With Your Settlement Agreement?
If you have been offered a settlement agreement by your employer, or you wish to offer one to your employee, it is important that you obtain legal advice promptly.
Our employment lawyers have experience supporting employers through large-scale redundancy exercises and advising individuals on their rights and options.
If you have any questions or would like to discuss a settlement agreement, contact our team today for expert, straightforward advice.