56 mins ago
A settlement agreement is an agreement between an employee and employer which settles any potential claims which the employee may have against their employer. These claims can be a combination of contractual claims and statutory claims under employment legislation.
The law demands that you cannot sign away these employment rights without the advice of an independent solicitor first. That is why the settlement agreement will contain a provision for the employer to make a contribution to the employee’s legal fees.
Many individuals who come to us don’t know what to expect. These agreements are offered to employees who are about to leave a company and they contain a package of offers. For example, they usually contain a combination of your statutory notice pay and a compensation payment as well as other potential payments such as further pension contributions and/or bonuses.
The most important thing though is that when employees sign off the agreement, they sign away their rights to bring any potential claims they have. This is why you always need to take advice from an independent solicitor.