Settlement Agreements
A Settlement Agreement is a binding agreement (usually confidential) reached between you and your employer usually when a contract of employment is to be terminated or a dispute is to be resolved. It sets out the terms and conditions reached between you and your employer which usually offer a severance package in return for you agreeing not to pursue any claim/s that you may have to an employment tribunal or court.
Employers often offer severance packages to employees when they want to terminate their employment contract such as in a redundancy situation.
The Purpose of a Settlement Agreement
The purpose of a Settlement Agreement as with any agreement is to provide certainty for both parties and to settle all issues between the parties on terms agreed. As it is a binding agreement it is important that you ensure that your interests are properly protected when the Settlement Agreement is being negotiated.
In order for a Settlement Agreement to be effective it is necessary that you receive independent legal advice. It is very important that the Settlement Agreement is explained to you and you fully understand what you are agreeing to and the implications of doing so before signing. A solicitor giving the advice must also sign the Settlement Agreement and certify that the appropriate advice has been given.
References following a Settlement Agreement
There is generally no legal obligation on an employer to provide a reference. Any reference that is provided should be true, accurate and fair. It is possible to incorporate a reference into the Settlement Agreement, in which case the reference becomes part of the agreement.
In a redundancy situation it is usual for your employer to pay the legal expenses incurred or a contribution towards them in order for you to obtain legal advice on the Settlement Agreement.
We have experience in advising on Settlement Agreements and would be happy to assist you. We are able to turn our advice around on your Settlement Agreement quickly and remotely- wherever you are based.
Should you need advice on your proposed Settlement Agreement please contact Joseph Quinn of this firm on 01392 248858 to discuss.