Settlement agreements

A Settlement Agreement is a contract between an employer and an employee, which settles employment disputes and prevents and/or resolves claims an employee might have, ending the employment relationship on agreed terms.

Settlements can arise because of:

  • Unfair dismissal
  • Wrongful dismissal
  • Constructive dismissal
  • Breach of contract
  • Discrimination
  • Misconduct
  • Redundancy
  • Disciplinary
  • Sickness
  • Incapability
  • Work relationship breakdown
  • Grievance

An employee is required to have independent legal advice on a settlement agreement before they can sign it. Once signed, the employee is prevented from bringing an employment tribunal or Court claim in relation to the settled issues. An employee does not have to accept a settlement agreement or the first offer of settlement.

The employee will have to determine what they wish to achieve and weigh up all of the factors, not just financial but whether a reference could be obtained or whether an amicable quick resolution is preferable to an employment tribunal. A valid settlement agreement will mean that the employee agrees to give up certain legal rights usually in return for a severance payment or termination settlement package. The main effect of the agreement is that you won’t be able to bring an employment tribunal or court claim.

Our solicitors are experienced in reviewing, advising, negotiating and finalising Settlement Agreements to provide an efficient conclusion whilst obtaining the best outcome for our clients.

Contact us today on 01745 343661 (Rhyl) or on 01492 535640 (Colwn Bay).

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