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Settlement Agreements

A ‘Settlement Agreement’ (previously known as a compromise agreement) is a legally binding contract made between an employer and employee setting out the terms of departure between the parties and once signed, prevents the employee from bringing legal action against the employer in respect of his employment and/or its termination.

Such Agreement is usually reached in exchange for a tax efficient termination payment, and other benefits for example a reference which are also set out in the agreement. One of the main benefits of entering into a settlement agreement is to provide certainty between the parties, and a clean amicable break between an employer and employee.

Settlement Agreements are only binding if the employee receives independent, usually legal advice upon same.

Whether you are an employee requiring advice upon a Settlement Agreement handed to you by your employer or an Employer who needs an individually drafted Settlement Agreement for one or more employees our team has the necessary drafting expertise and can provide professional legal advice.

Contact Steve or Sally to find out how they can assist you.

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