When an issue arises during an employment relationship, one solution is to enter into a settlement agreement (formerly known as a compromise agreement, or a mutual termination agreement). This is a legally binding agreement that allows you to receive a lump sum (often tax-free) in return for agreeing not to bring a claim against your employer.
There are a number of requirements that must be met in order for a settlement agreement to be binding. One of these is that you must receive independent legal advice on the agreement from a qualified person, such as a solicitor with experience in employment law.
How we can help
We advise employees upon settlement agreements on a daily basis. We will explain the technical terms to you in plain English and do everything possible to ensure that you receive a satisfactory outcome.
Your employer will usually provide a contribution towards your legal fees for a settlement agreement and in the majority of cases, this will be sufficient to cover all of the costs. The costs generally depend on whether you need us to negotiate on your behalf and how those negotiations proceed, but you will always be kept updated.
If you have been offered a settlement agreement and need advice as to what it means for you, please do not hesitate to contact us for concise and clear advice.
You can also find out more in the article: You've been offered a Settlement Agreement: What next?
Read more: Mythbusters Guide to Settlement Agreements