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Settlement Agreement Negotiations

What is a settlement agreement?

Settlement Agreements (formerly known as Compromise Agreements) can be entered into between employers and employees. A settlement agreement prevents an employee from bringing claims against their employer.

Employment Settlement Agreements are quite common; it is the only way that an employer can be sure that an employee will not bring a claim against them. It is possible for an employer to have a confidential and pre-termination conversation with their employee. This will usually result in a settlement agreement.

When an employee signs a Settlement Agreement they are signing away their right to bring a claim against their employer. As an employee you must be given independent legal advice about the terms of the Settlement Agreement. We have a lot of experience in relation to advising employees about settlement agreements.

Will I have to pay the settlement agreement solicitor fees?

Once you have been given a copy of the agreement we will see you to go through the potential claims that you may be settling, explain the agreement to you and advise you in relation to any changes to the wording so that you are protected.

The employer must pay a contribution for this legal advice meaning that there is usually no charge to the employee.

Settlement Agreements often contain confidentiality clauses so it is important that if you have been handed an agreement that you do not discuss its existence or content with anybody, in particularly colleagues, before seeking legal advice.

If you would like to discuss your options with our Head of Employment, Kate Brooks, then please call our Employment Hotline on 01202 057754 or simply request a call back via email kate.brooks@ellisjones.co.uk.

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