25 Sep 2023
14 Dec 2021
What are Settlement Agreements?
A settlement agreement is a legally binding document between an employee and employer, which settles claims the employee may have arising from the employment or termination of employment. In return for the payment of monies by the employer, the employee will not be able to bring employment law claims against their employer. Sometimes the employer will only offer, for example, a reference and no payment of monies.
The employee must be advised by a qualified independent adviser before signing the settlement agreement. Solicitors are qualified independent advisers, and at Rubin Lewis O’Brien our Employment Law Department is headed by Peter Marshall, Solicitor, and expert with over 25 years experience of working on behalf of employers and employees.
When do Settlement Agreements get used?
Employers will often use settlement agreements to avoid claims at the Employment Tribunal, when they are in dispute with their employees. They are also frequently used by employers when they are making employees redundant. A settlement agreement means claims and disputes are settled in a legally binding agreement, and both parties can move on.
What Legal Costs are involved?
Settlement agreements will only become legally binding where the employee receives independent legal advice regarding the terms of the settlement agreement. Most employers will usually make a contribution of in the region of £350 plus VAT towards the employee’s legal costs of receiving such independent legal advice.
Rubin Lewis O’Brien are here to help you
If you want to talk about a settlement agreement, then please contact Peter Marshall. Peter can advise you, and he can also conduct negotiations on your behalf to achieve the best outcome.
Our Settlement Agreement service delivers plain no nonsense advice, with reliable response times.