A Settlement Agreement is one of the few ways an employee can give up their right to bring a claim to an Employment Tribunal. They must be signed in front of an independent solicitor or an accredited individual. They are very common and we advise both employers and employees.
For employers, a Settlement Agreement can be a convenient way to deal with a capability or conduct issue, for example. We provide the necessary advice to generate a discussion and negotiations which lead to an agreed exit for an employee at any level. Sometimes the agreements are relatively straightforward. On other occasions, they might deal with shares, bonuses and restrictive covenants. It is important that the legislative requirements are adhered to and the ACAS code is followed where possible. However, as well as on the legal side, we can also assist you practically and commercially to get your deal across the line.
We also advise employees who are presented with a Settlement Agreement and can help with anything from explaining the terms to negotiating a better outcome.
Here is a link to our article on Settlement Agreements.