Settlement Agreements for Employees

Your employer may present you with a settlement agreement. A settlement agreement is a contract whereby an employee (usually) agrees to their employment terminating, and in return for agreed severance arrangements, usually including a termination payment, the employee agrees to waive any claim that he or she may have against the employer.

A settlement agreement is usually raised by an employer during a confidential settlement discussion.

For a settlement agreement to be valid certain statutory conditions must be met.

The agreement must be in writing. You must have received advice from a relevant independent advisor on the terms and effect of the agreement and on its effect on your ability to pursue your rights before an Employment Tribunal.

Our employment team regularly advises employees in relation to the terms and effect of their settlement agreements. We are well versed in negotiating with an employer both in relation to the severance package as a whole, and in relation to the terms of the settlement agreement.

We can also discuss with you your options should you choose to reject the settlement agreement, including what potential claims you might have against your employer.