A Settlement Agreement is legally binding between employer and employee which can be used to settle Employment Tribunal claims (also used in civil claims).

 

The purpose of the agreement is that you compromise (waive) any employment and civil related claims, that you may have against your employer (excluding personal injury, pension and rights to whistleblow).  In return for your agreement to compromise any employment and civil related claims, your employer agrees to make a severance payment to avoid claims brought by you in a Tribunal or a Court.  However, there are specific conditions before an employer and employee can enter into these types of agreements. We advise our clients on both sides to ensure that they secure legal advice and representation when contemplating entering into a settlement agreement because they can be challenged and found to be illegal and void if not drafted and advised upon correctly as we explain below.

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Our fees for advising an employee on their options and the settlement agreement under the requirements of the Employment Rights Act are usually paid for by the employers who include this provision within the settlement agreement. 

 

We offer bespoke fee arrangements for employers requiring assistance on drafting and advising on the correct course of action that can be taken.