Settlement Agreements (formerly known as Compromise Agreements) are renowned for the ‘hush hush’ element, which can often result in a lot of uncertainty for Employees.
But what exactly are Settlement Agreements?
They are legally binding contracts between Employees and Employers to finalise an agreement reached for an Employee exiting the business. They can protect both parties from claims against each other.
Why would my Employer give me a Settlement Agreement?
There can be various reasons for a Settlement Agreement. It might stem from a disagreement that has made the working relationship unsustainable, or it could arise due to redundancy, long-term health issues, or early retirement.
Can I propose a Settlement Agreement to my Employer?
Yes, they can be suggested by either party.
What will it cost me?
Your employer will usually pay for the legal fees on your behalf, and this is usually set out as part of the agreement.
What should I do as an Employee receiving a Settlement Agreement?
To be legally binding you must obtain independent legal advice. Therefore, if you have received an agreement, you should contact a solicitor as soon as possible.
In some circumstances you may want to negotiate the terms of your agreement If that is your intention, you should make your adviser aware as soon as possible so that they can properly advise you.
Do I need to keep receipt of a Settlement Agreement confidential?
Yes, they usually have confidentiality provisions in them limiting who you can disclose the existence of the agreement to. If you are unsure about what you can say, your solicitor will be able to answer your queries.
Can my Employer force me into signing it?
No, they must be entered into voluntarily. You should always seek advice if you are unsure as to whether to proceed.
Will it take a long time to finalise an Agreement?
This very much depends on individual circumstances, the complexity of the agreement and the background of why the agreement has been proposed. At Jacksons Law Firm, we ensure you are provided clear guidance on estimated completion times. However, these timelines may vary in certain circumstances, such as ongoing negotiations. Rest assured, we strive to complete matters efficiently and deliver results as quickly as possible.
Our Employment team have a wealth of experience in representing Employees and Employers in entering into Settlement Agreements. If you have received an Agreement or are in the process of negotiating terms, please do not hesitate to contact a member of the team.
