What is a settlement agreement?
Essentially a legally binding contract which records the intentions of the employer and employee at the end of employment, redundancy, or following a grievance. Usually it will embody terms of financial settlement, compensation, payment in lieu of notice sum and a clause foregoing the employee’s rights to bring a claim before the Employment Tribunal.
Why do I need independent legal advice?
Being a particularly sensitive document, a settlement agreement is not legally binding until, you have had independent legal advice from a practicing solicitor, and an advisor’s certificate issued. This needn’t be daunting though as the employer will usually make payment to your solicitor, making your settlement agreement advice free of charge.