Compromise Agreements have been around for many years and have often been utilised by employers to bring an end to a contract of employment. In July 2013 Compromise Agreements became known as Settlement Agreements, and whilst some changes were made (for example, a Settlement Agreement does not necessarily have to state that it is made in settlement of a dispute, whilst this was an essential feature of Compromise Agreements) the same principles generally apply.
The law states that an individual cannot contract out of their employment rights, but there is an exception to this rule where a settlement is reached by way of a Settlement Agreement.
A Settlement Agreement is a legally binding agreement between an employer and employee used to set out the terms and conditions reached when a contract of employment is to be terminated, or a dispute is to be resolved. It is essential that you fully understand your employment rights before contracting out of them, so you are required by law to obtain legal advice from a qualified legal adviser, such as a solicitor, before signing a Settlement Agreement. At Allan Janes, we have qualified employment law specialists with the experience and insurance cover required to advise on all aspects of Settlement Agreements.
Settlement Agreements can be used in a number of circumstances, including redundancy, dismissal, or settlement of an Employment Tribunal claim. Perhaps the most common use is in redundancy situations where it minimises the risk of complications and concludes the employment contract unequivocally by agreement of both parties.
As an employee, your employer may have approached you with a Settlement Agreement, perhaps in light of a potential redundancy or dispute. We understand that dealing with such situations can be incredibly stressful. Our expert employment lawyers are specialists in dealing with settlement agreements and have negotiated countless settlement agreements on behalf of employees, and will guide you every step of the way and to help to achieve settlement without the need for litigation.