Settlement Agreement Solicitors for Employees

A settlement agreement is a legally binding contract between an employer and an employee, bringing the employee’s employment to an end on agreed terms.  In order for the contract to be enforceable and to ensure the employee’s best interests are protected, an employee is required to take independent legal advice before signing a settlement agreement.

In signing the agreement you, as the employee, will be waiving your right to bring any claims against your employer. A settlement agreement therefore provides an employer with the comfort and certainty that they are protected against you bringing a successful claim against them, in respect of your employment and/or the termination of your employment.

Since the employee is obliged to take legal advice on the agreement and because the agreement is principally for the benefit of the employer, it is acknowledged that your employer will contribute toward the cost of you taking that advice.

These types of agreements will usually provide the employee with a tax free compensation or termination payment, in effect for signing the agreement, in addition to the other entitlements they are due, and also an agreed reference as part of the settlement.

Ensuring the terms of your exit and the Agreement are fair

Your settlement agreement must be reviewed and assessed in relation to your personal employment circumstances i.e. your position, seniority and length of service.  The options available to you should be clearly explained and most importantly you must be given advice on whether the terms and conditions contained within the agreement are fair and whether or not they may be improved upon or altered in any way – to your benefit.

Given the agreement will be in ‘full and final settlement’ of any claims and financial entitlements you may have, any payments to you or benefits not covered in the agreement will be lost, therefore it is essential you obtain the right advice from a specialist.

The decision as to whether to accept and sign a settlement agreement is with you, however with our expert advice you will know exactly where you stand and be in the best possible position to make that decision.

For specialist settlement agreement advice from an experienced solicitor, call Farnworth Rose today on 01282 695 400 or complete the form below and we will be in touch.