When an issue arises during an employment relationship, one solution is to enter into a settlement agreement (formerly known as a compromise agreement). This is a legally binding agreement which prevents an employee from making a claim against you in return for a compensation payment.
There are a number of requirements which must be met in order for a settlement agreement to be binding. One of these is that the employee must receive independent legal advice on the agreement from a qualified person, such as a solicitor. It is therefore standard practice for employers to provide a contribution towards the employee’s legal fees for a settlement agreement (although it is not a legal requirement).
How we can help
We can provide you with a document that will meet the requirements and ensure that you are properly protected. We can also advise you as to suitable amounts in relation to compensation and contributions towards legal fees.
If you have an issue in the workplace that could be resolved by a settlement agreement, please do not hesitate to contact us for clear and practical advice.< Back to Employment Law for Employers
Please contact one of the team to discuss your specific requirements.