A Settlement Agreement (previously called a ‘Compromise Agreement’) is a legal agreement between you and your employer under which you will give up your rights to bring certain claims against your employer usually in return for a sum of money and an agreed job reference as well.
Settlement Agreements are also sometimes referred to as ‘Termination Agreements’, ‘Severance Agreements’ and ‘Exit Agreements’ as well.
Often Settlement Agreements are introduced as part of negotiations regarding the termination of your employment, but that is not always the case. It is also possible for you, as the employee, to instigate settlement discussions with your employer.
Dealing with Settlement Agreements
Regardless of the circumstances, it can be a daunting time for an employee, especially if you are presented with settlement terms unexpectedly or find yourself in unfamiliar circumstances and are not sure as to how to proceed. Even those individuals who are more acquainted with the term ‘Settlement Agreement’ may find themselves wondering if the deal they are being offered is fair and acceptable and whether they should sign the agreement.
How we can help – It is a legal requirement for a valid Settlement Agreement that you take advice from a qualified professional but that is not the only reason to seek legal input.
We have dealt with Settlement Agreements in all manner of circumstances, and we can advise you on the best way to deal with your particular situation at work. We will discuss the terms of the deal you are presented with and the options available to you and ensure that you are comfortable before signing the Settlement Agreement.
Preparation for Settlement Negotiations
It is often useful if you have kept a note about what happened in the lead up to settlement negotiations and what has been said to you, as well as providing us with a copy of your contract of employment, so please do keep that in mind.
Legal Costs
An employer will usually contribute towards the legal costs for you to see a solicitor or qualified adviser and this is something you can check if it has not been raised previously. For more information on Settlement Agreements or if you would like to discuss a Settlement Agreement which you have been presented with or settlement negotiations, please contact us.
