Settlement Agreement Solicitors in Bovey Tracey, Exeter, Exmouth, Honiton, Launceston, Newton Abbot, Paignton, Sidmouth and Torquay.
A Settlement Agreement (formerly known as a compromise agreement) is a contract made between an employee and employer in order to settle a dispute. Most often they are used to record the termination of employment but not always. An employee who enters into a settlement agreement will give up the right to bring employment-related claims against their employer and will normally receive an enhanced sum of money or other benefit for doing so.
You may be offered the settlement agreement by your employer because there is a redundancy situation or the relationship between you and your employer has broken down. Whatever the reason, you must receive independent legal advice on the terms and effect of the agreement.
We offer a fast, efficient and personal service to meet your needs. Our specialist Employment Solicitors have a wealth of experience in negotiating settlements and will work with you to achieve the best possible settlement. In most cases, your employer will be responsible for your legal costs so you won’t have pay anything.
If you have been offered a settlement agreement then our Employment Solicitors can meet with you at our offices in Bovey Tracey, Exeter, Exmouth, Honiton, Launceston, Newton Abbot, Paignton, Sidmouth and Torquay. We can also advise you by telephone.
To receive advice on a settlement agreement or have a question in relation to one answered, please contact us.
Settlement Agreement FAQs
What is a Settlement Agreement?
A Settlement Agreement (formally known as a Compromise Agreement) is a legally binding contract between an employer and employee to compromise an employee’s contractual and statutory claims, mainly on the termination of employment. By law, an employee will need to take independent legal advice before signing a Settlement Agreement. The employer will usually offer compensation to the employee in exchange for the employee ending their employment and agreeing not to bring any claim against them.
What are the benefits of a Settlement Agreement?
A Settlement Agreement effectively provides a clean break between the employee and the employer with both parties having agreed the terms of the settlement. The employee will have a document detailing the termination of employment, which will set out the financial settlement they have agreed with the employer, and can also include a job reference etc. The employer will have the guarantee that the employee will no longer be able to issue any claim against them now they have left their employment and they have avoided a potentially long drawn-out issue of contention with the employee.
When would a Settlement Agreement usually be offered?
An employer may offer a Settlement Agreement during or after employment. A Settlement Agreement may also be offered during an existing dispute with an employee in an attempt to bring the dispute to a close. Sometimes an employer will suggest the idea through a protected conversation, a confidential off the record chat under section 111A of the Employment Rights Act 1996. They can effectively be used to avoid a time-consuming disciplinary or redundancy process which usually incurs a substantial financial cost for an employer.
How much do you charge for advice on a Settlement Agreement?
- It is standard that the employer normally pays for the cost of the advice, which is around £300 plus VAT. However, the advice that we give to employees on Settlement Agreements is entirely independent.
- We can usually offer an appointment within 24 hours.