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A settlement agreement is a legally binding contract between an employer and an employee. This type of agreement normally results in a waiver by an employee of his or her rights to make any claims covered by the agreement to an employment tribunal or civil court.
Settlement agreements can be proposed by either an employer or an employee and can be offered at any stage of an employment relationship
They are most commonly used to end employment on agreed terms or to resolve an ongoing dispute, for example, a dispute over holiday pay.
In order for a settlement agreement to be legally binding, certain conditions must be met. The main ones are:
- It must be in writing.
- The agreement must relate to a particular complaint or proceedings.
- The agreement must be signed by the employee.
- The employee must have received independent legal advice on the terms from a lawyer or a certified and authorised member of a trade union.
- The adviser must be identified in the agreement and the adviser must be insured.
- The agreement must state that the statutory conditions regulating settlement agreements have been met.
Usually, there is a process of negotiation during which both sides state their proposals or counter-proposals until an agreement is reached or until it is clear that no agreement can be reached. Settlement agreements are voluntary on both sides and neither party has to agree to it or enter into discussions about them. Conversations about settlement agreements are normally conducted on a without prejudice basis. They are also sometimes mentioned as part of a protected conversation
Where the parties are unable to reach an agreement, the settlement discussion cannot usually be referred to as evidence in an employment tribunal or in other court proceedings.
We are able to provide assistance with drafting binding settlement agreements on behalf of employers and do so normally on a fixed fee basis.
Our team are highly experienced in this area as well as in wrongful dismissals and redundancies. If you require any help or assistance please contact our Employment Law Solicitors in Leeds. directly on 0113 3229222
We work with you to tailor the documents to the particular circumstances and also to ensure that your communications protect your business but also reflect the tone you want to take with your employees.
To find out more about settlement agreements please see our specialist site here
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At Consilia Legal, our employment law team are highly experienced in supporting businesses who need employment law advice for a wide range of employment law situations. If you would like to have a confidential discussion surrounding your employment law matter please contact us on 0113 322 9222 or email@example.com
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I couldn’t have been happier with your service – you and your team were a pleasure to deal with. I had absolute confidence in Marie and loved her pragmatic and no nonsense approach. I was also treated with total respect at what was a personally challenging time for me. Couldn’t recommend you highly enough.
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I am so grateful for all your help and support on this matter. It had been the first time I had been in such a situation and felt nervous and uncertain. Marie put me at ease and helped me to get a deal I was happy with. Thank you.