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Settlement Agreements

What you need to know about Settlement Agreements

What is a Settlement Agreement?

Settlement Agreements (previously referred to as Compromise Agreements) are usually used to formally end the employment contract between an employer and employee and/or to settle a potential Employment Tribunal case.

The Agreement is usually drafted by an employer and then given to the employee with instructions to seek independent legal advice.

What is the effect of a Settlement Agreement?

The Settlement Agreement is a legally binding document. Under the terms of a Settlement Agreement the employee gives up any rights that he/she may have and cannot bring a claim in the Employment Tribunal once the Agreement is signed.

It is very important to get the right legal advice about your claim before agreeing to the terms of a Settlement Agreement. Rutherfords LLP have specialist expertise in Settlement Agreements and support employees during the difficult period when the employment relationship has been swiftly brought to an end.

If you have been called to a meeting by your employer/HR Department to bring your employment to an end and/or have been offered a Settlement Agreement by your employer, please call us (to book an appointment or for an informal chat) on 01827 311411 and ask for Tanya Summers or email t.summers@rutherfordslegal.com.

How can we help?

We will:
1. Arrange a meeting at short notice where possible;
2. Listen and take note of all the information regarding the circumstances giving rise to the Agreement;
3. Provide you with advice on the potential rights/claims you could be giving up by signing the Agreement;
4. Check the amounts offered to you, ensuring they are fair and reasonable and if not we will discuss with you options for negotiation;
5. We will check the wording of any agreed references to ensure you are happy with the contents;
6. Liaise/negotiate (where applicable) with your employer on your behalf to get the Agreement finalised as quickly as possible keeping you updated throughout.
7. We will be approachable and understanding during what can be a very difficult/unsettling time for employees.

How much will it cost?

Usually your employer will agree to pay your legal fees for obtaining advice on your Settlement Agreement. This is typically a minimum of £250 plus VAT depending upon the complexity of the matter and the circumstances of the case. If your employer has not agreed to pay your legal fees then we can negotiate with your employer to seek payment of your legal fees by them as part of the Agreement.

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