A settlement agreement is a type of legal contract that helps to resolve disputes among parties by coming to a mutual agreement on the terms. The settlement agreement acts as a legally binding contract. Quite often a settlement agreement brings an employment contract to an end on agreed terms. If you have been offered a settlement agreement or would like to discuss the terms of one, our highly regarded and experienced employment solicitors can assist. We pride ourselves on helping you achieve the best possible settlement.
What Is a Settlement Agreement?
A settlement agreement prevents an employee from suing their employer, usually after receiving a sum of money.
Once a settlement agreement has been signed, the employee can no longer make a complaint about a breach of a legal provision about their employment to an employment tribunal claim.
We regularly advise clients from the public and private sector on settlement agreements.
In certain situations, a settlement agreement will be accompanied by a share purchase agreement which you may need advice on. We draw on expertise from across the firm to offer a comprehensive service, ensuring that we offer specialist advice at every stage and achieve a timely and efficient solution.
Why Do I Need To Receive Legal Advice Before I Sign a Settlement Agreement?
It is vital that you understand the legal issues and the value of any potential claims before you sign a settlement agreement. This is because after you have signed, you can no longer take any action on these. It is a legal requirement that you receive specialist legal advice before you sign a settlement agreement.
It is important for a solicitor to assist you in understanding a settlement agreement as they can be written in a very formal language and refer to legislation which many people are not familiar with. Our friendly and experienced employment solicitors can assist you by:
- Advising on whether you have any claims that can be brought to an Employment Tribunal before you enter into the agreement
- Advise you on whether the sum offered in the settlement agreement is reasonable in your circumstances
- Explain the meaning of the agreement and its effect on you
- Advise you on whether anything should be amended or changed
- Negotiate on your behalf
What Are the Benefits of a Settlement Agreement?
The benefit of a settlement agreement to the employer is that you accept the agreement and cannot seek further compensation.
The benefit of a settlement agreement to you is that you avoid stressful and potentially expensive litigation and you receive a guaranteed sum of money as compensation in return for settling your claims.
How Much Will It Cost Me?
The cost of advice for a settlement agreement is usually covered by your employer.
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