A settlement agreement, formerly known as a compromise agreement, is a legally binding agreement between an employee and an employer. The agreement will set out the terms and conditions agreed between an employee and employer, upon the termination of a contract of employment or in order to resolve a dispute.
An employer will usually request such an agreement where they are looking to ensure that the employee does not proceed with an employment claim against them. The settlement agreement will record the terms and conditions agreed between the parties and will provide clarity and certainty.
In return for an employee signing a settlement agreement, the employer will generally offer some form of financial compensation. It is imperative that you understand the terms contained within the agreement before signing; in fact, under the Employment Rights Act 1996, it is a legal requirement that an employee receives independent legal advice prior to a settlement agreement being signed.
It is usual for the employer to pay, or at least, contribute, to the the legal costs incurred in relation to obtaining independent legal advice. At Ison Harrison Solicitors we will seek to ensure that these fees are paid in full by your employer.
When will a Settlement Agreement be Used?
- In relation to redundancy
- In relation to a dismissal
- To record a mutual agreement between employer and employee
- In order to settle an Employment Tribunal claim
At Ison Harrison Solicitors, our Employment Department have a considerable depth of knowledge when advising on compromise and settlement agreements. The head of our Employment Department, Yunus Lunat, has over 20 years' experience as a specialist employment solicitor.
Our Employment Department is able to offer same day appointments so do not hesitate to contact Ison Harrison Solicitors if you require independent legal advice on a Settlement Agreement, contact our Employment Department on 0113 284 5023 or by way of e-mail be clicking here.« Go backContact us »