Settlement Agreements Advice

Settlement Agreements (formally known as Compromise Agreements) are one method by which employers can settle employment and other claims which employees may have against them. Usually, the agreement will include termination of the employee’s contract of employment on a specified date. Settlement agreements commonly involve financial compensation in return for the employee giving up (‘waiving’) the right to bring one or more claims in an employment tribunal or other court of law. They may also include the agreed form of wording for a reference – often a valuable document for the ex-employee to enable them to secure alternative employment.

To be valid and binding upon the employee, however, certain conditions have to be met. These include very precise wording in the agreement, tailored to the specific facts of the case and also the requirement for the employee to receive independent legal advice upon the terms and the effect these will have upon the possibility of pursuing claims. Independent advisers are usually specialist employment solicitors or other authorised individuals. Any settlement is officially completed once both parties have signed the agreement.

Careful drafting of the agreement which should also include fall-back provisions is required to ensure that it will survive the scrutiny of the Court. On no account At Ralli we offer extensive advice from the commencement of settlement discussions to ensure that we can facilitate a settlement where possible for our clients.

Settlement Agreements and Compromise Agreements

Settlement Agreements advice from Ralli

It can often be very difficult to negotiate with a disgruntled employee where tempers are often frayed and emotions take control. Our specialist support and guidance helps ensure that our clients achieve a satisfactory resolution allowing them to get on with running their business

For help and assistance on any queries relating to settlement agreements, please contact our employment team on 0161 832 6131 or fill out our online enquiry form.

Find out more on our Employment Law page.


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