The average person will spend 90,000 hours at work! It is therefore not unusual for there to occasionally be a disagreement between employer and employee. Whilst the large proportion of disputes are resolved to the satisfaction of both parties, there may occasionally be a need for the parties to enter into a settlement agreement. Settlement agreements were formerly known as compromise agreements

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.

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Harjas S. Sehra

01753 325100

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