What is a Settlement Agreement?
A settlement agreement (these used to be called compromise agreements) is a contract between an employer (usually a company) and an individual (usually a former employee). A Settlement Agreement does two main things : firstly, It sets out the terms upon which the individual is leaving their employment or if a dispute has arisen after termination, it will set out the terms upon which that claim has been settled.
Secondly, it will act as an effective waiver of all employment related rights the individual has against their former employer. For it to be a legally binding agreement, the individual must take independent advice from a solicitor (or a barrister) or an unauthorised trade union representative. The person who provides the advice on the Settlement Agreement must also sign a certificate to confirm that they have given that advice.
If you have questions or need advice it is advisable to get advice from qualified, specialist employment solicitors. Please get in touch with us on 01483 303636 to discuss your situation and see how we can help.
