Settlement Agreement Advice

If an employee resigns, or if their employment is terminated, a settlement agreement might be an appropriate means to achieve a swift resolution. We can draft settlement agreements for employers, or review and explain the terms to employees.

What is a Settlement Agreement?

Settlement agreements are used to record the terms upon which an employer and employee have agreed to terminate the contract. They are common, but every employee will have different needs and concerns.

Why do I need to seek Independent legal advice if I have been offered a Settlement Agreement?

When accepting a settlement agreement, the employee is likely to waive significant rights and enter into significant restrictions. It is therefore important that the employee understands the implications of the agreement, so the law requires an employee to receive independent legal advice on the terms before signing.

If you have been offered a settlement agreement here are Laceys top 5 points you should consider before signing;

• Have you been provided with sufficient compensation?
• Is your future employment restricted after termination?
• Could the wording of a reference cause you problems when applying for a new job?
• What is it that is said to be ‘confidential’ and is this fair and possible to agree to?
• Are any of the clauses uncertain or the consequences potentially unknown?

What will I have to pay?

It is expected that an employer will contribute to the costs of an employee receiving legal advice on a settlement agreement. Employers vary in the amount that they will pay.

Laceys will be clear from the start about costs and whether or not the employer’s contribution will cover our costs. If not, we will help you make a decision and what options you have.

For further advice please contact one of our expert Employment experts today.