Wherever possible, it is better to part on agreed terms.
Settlement agreements are legally binding documents that bring the employer-employee relationship to an end. Typically, under a settlement agreement the employer agrees to provide a termination payment, and possibly other benefits, in return for the employee’s agreement to waive certain rights.
These documents are most beneficial in situations where there is a dispute or risk of a dispute between the employer and employee and help the relationship to come to a clean and amicable end.
We believe that wherever possible, it is better to part on agreed terms. We have advised on over 1,000 settlement agreements over the years and we consider ourselves to be specialists in this field. If you are an executive or senior employee who is considering entering into a settlement agreement with your employer, it is essential that you receive expert employment advice to ensure you are fully informed of the implications before doing so.
What rights would I be giving up in a settlement agreement?
In most cases, employees are asked to waive their right to pursue any claims in an Employment Tribunal or court. This means that the employment relationship can come to an end without the need to follow many of the legal formalities that apply.
It is a legal requirement that you must receive independent legal advice before signing a settlement agreement so that you are fully aware of the rights you are surrendering and the consequences of doing so. As part of this service, your legal advisor will provide guidance on the merits of your claim and how much you could potentially receive if you were to make a claim to a Tribunal. Your employer must ensure that you have received this advice and will usually cover or contribute to your legal fees.
What are the benefits of a settlement agreement?
The main benefit of a settlement agreement is that it helps you and your employer reach an agreement both quickly and amicably. If you were to take your claim to an Employment Tribunal, the process would likely take a lot longer and could be very stressful, and there is no guarantee of a successful outcome. A Tribunal decides the outcome of the claim and this is imposed on all the parties, whereas with a settlement agreement you can negotiate with your employer until you both get what you want out of the situation.
Contact our Settlement Agreement Solicitors London
Our Employment Lawyers are based in London and work with executives and other senior employees throughout England. If you wish to negotiate a departure with your employer, our Employment Solicitors will ensure the agreement is in your best interests and that your rights are protected. To discuss your circumstances with our highly approachable and professional team, call 0207 374 6546 now or contact us online.