At Birketts, we can advise you on the contents of the settlement agreement and where applicable assist to negotiate the terms of the package on your exit.
A Settlement Agreement (formerly known as a Compromise Agreement) is a legally binding contract which can be used to end the employment relationship, on agreed terms, in exchange for compensation.
In many cases, your employer will want to make a payment to you in return for an effective waiver of any claims you may have against them. This may happen where your employment is continuing, but it is most common where your employment has terminated (or is about to be terminated).
Why do I need to speak to a Solicitor about my Settlement Agreement?
It is a requirement for you to receive advice, from an independent adviser, on the terms and effects of the Settlement Agreement, in order to ensure the settlement is enforceable. You as an employee are required to waive your rights to bring certain claims against your employer and any parties referred to in the agreement.
How much does a settlement agreement cost?
Usually, your employers will offer to contribute towards the cost of your legal fees and the settlement agreement should contain a clause confirming this.
How much should my settlement be?
We can also advise on whether the sums offered are appropriate for the circumstances relating to your exit and if not, advise on what the alternatives may be. If you are unhappy with the settlement offer then we can negotiate the terms of the agreement on your behalf.
What happens if I do not want to sign the settlement agreement?
If, after receiving advice, you decide not to sign the agreement or if your adviser advises you not to sign the agreement then your employer will withdraw their offer and you would continue, as if an offer was never made.