A Settlement Agreement (formerly known as a Compromise Agreement) is a legally binding agreement between an employer and an employee, under which the employee gives up their rights to pursue or bring future claims against their employer.
Settlement Agreements offer the benefit of certainty. They are often a clean, dignified and quick way to end an employment relationship. They can also be used to resolve a dispute that may have resulted in a claim being pursued by the employee against your organisation. The employer has the guarantee that it will not have to deal with a future claim by that employee. It is for this reason that many employers use the Settlement Agreement process, even where the employer has followed a fair process and/or the employment has ended amicably.
Davey Law can provide in-depth advice on Settlement Agreements, from initiation with your employee through to completion. We will also advise you on a case by case basis whether the particular scenario requires you to have a “protected conversation” or a “without prejudice” conversation with your employee. Getting this wrong can be a real problem for you as the employer if you have made an offer, falsely thinking you have “protection” in doing so.
How can we help?
Settlement Agreements require careful, expert handling to achieve an outcome that works for both parties, based on sound legal advice. We can provide you with advice on all the legal issues which can arise out of a Settlement Agreement, as well as how to progress any negotiations.
We are able to provide employment law advice and services to employers throughout England and Wales.
For more information on Settlement Agreements or any of our wider employment law services, please contact us by email or call our offices to speak with Faye Reynolds, Head of Employment.
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