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A Settlement Agreement is a legally binding document which follows the termination of employment. The agreement, also known as a Severance Agreement, provides for the employer to pay the employee a sum of money following their dismissal. By signing, the employee is effectively signing away any claim they may have against their former employers.
This is advantageous for the employer as it prevents possible future complaints to a tribunal, and is beneficial to the employee as it provides them with a fair settlement.
It is vital that an employee recognises the terms and effect of the Settlement Agreement and in order for it to be binding, the employee must seek advice from an independent solicitor before signing.
Our solicitors are experienced negotiators who can provide advice on both the drafting of Settlement Agreements to ensure their validity; and discuss the options available to employees who have received Settlement Agreements which they believe to be unfair.