Settlement Agreement Advice For Employers
Settlement Agreement Advice For Employers
If you are an employer seeking to protect your business from potential claims on the termination of an employee’s employment, a settlement agreement may be required.
A settlement agreement (previously known as a compromise agreement) is a legally binding contract prohibiting an employee from bringing legal action against their employer in respect of the employee’s employment and/or its termination.
In return for the employee agreeing not to pursue any claim, the employer will often provide an employee with a financial incentive or severance package.
At Farnworth Rose, our experienced employment law solicitors in Nelson and Barrowford can ensure your business is protected from potential claims by offering the advice you need on settlement agreements.
To talk to a member of our expert employment law team for advice on drafting settlement agreements, call us now on 01282 695 400.
Settlement agreements can resolve potential claims
Settlement agreements should only be used by employers when there are potential claims to be resolved.
It is essential that any settlement agreement is executed properly. A settlement agreement which is not executed properly may not rule out the risk of an ex-employee bringing a claim at a later date.
This means it is vital for employers to seek expert legal advice when entering a settlement agreement with an employee.
In order to be executed properly, a settlement agreement must:
Be in writing
Relate to a complaint or legal proceedings
State the statutory conditions for a severance agreement have been satisfied
Provide details of the independent legal advisor
Confirm the employee has received advice from the legal advisor on the terms and the effect of the agreement
Ensure your settlement agreements are properly executed
At Farnworth Rose, we understand that each settlement agreement may have different requirements. Our expert employment law solicitors can ensure that a settlement agreement is the best course of action and that it is executed properly.
A properly executed settlement agreement can save your business significant time and money by protecting you from any potential legal proceedings.
How to contact the employment law team at Farnworth Rose
For specialist settlement agreement advice from an experienced solicitor, call Farnworth Rose today on 01282 695 400 or complete the form below and we’ll call you back.
