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If you are facing a problem at work, your employer might ask you to sign a settlement agreement to resolve the matter.

Typically, a Settlement Agreement will formally end your employment contract on agreed terms – in essence, your employer might agree to pay you compensation if you drop all claims against them (past, present and future). In most cases, you will not be able to take your claims to an Employment Tribunal or a Civil Court once you have entered into a Settlement Agreement.

Our skilled solicitors in Chelmsford can provide advice on whether a Settlement Agreement is the best option for you. We can also help you negotiate a strong, watertight agreement with your employer or former employer which allows you to move on with your life and career feeling confident and secure.

Whether you believe you need it, or not, it is legally required that you receive independent legal advice before entering into a Settlement Agreement, otherwise the courts will consider it invalid. Because of this, your employer will contribute to your legal fees to settle the matter.

Speak to one of our expert Settlement Agreement solicitors in Chelmsford today by giving us a call or filling in our simple online enquiry form.

How our settlement agreement solicitors can help

We understand how stressful employment claims can be. Not only is your livelihood and financial security at risk, but work-related issues can make you feel uncertain about your capability or angry about being mistreated. We want to support you during this challenging time. Whatever your employment law issue, we will ensure your best interests are represented at all times.

Settlement Agreements can save people a lot of time and money as they enable parties to resolve the issue long before it reaches an Employment Tribunal.

What terms do settlement agreements include?

Every Settlement Agreement will vary depending on the employer and employee’s individual situation. However, the Agreement will formally end the employee’s employment and the employer will often agree to pay compensation. Other common terms include:
  • Confidentiality agreement – both you and your employer will agree not to disclose details of the dispute or the Agreement
  • A waiver – you will usually be required to agree to drop or officially settle all your claims. This means you cannot later take your employer to an Employment Tribunal
  • The official end date of your employment
  • Agreement that your employer gives you a reference

Can I ask my employer for a settlement agreement?

Yes. You can ask your employer if they would be willing to enter into a Settlement Agreement with you. However, they are not obligated to accept.

There are circumstances where a Settlement Agreement is in the best interest of both parties and we can advise you through that process and help you negotiate those situations.

Are settlement agreements legally binding?

Settlement Agreements are legally binding if:

  • You received independent legal advice by a qualified, insured legal advisor
  • It is in writing
  • It is signed by you

This means if your employer fails to stick to the terms of the Agreement, you can take them to court.

Settlement Agreements Q&A

What is a Settlement Agreement?

A Settlement Agreement, otherwise known as a Compromise Agreement, is a legally binding contract between an employer and an employee. It’s role is to outline the terms and conditions under which the employment relationship will terminate. It usually includes provisions related to severance pay, confidentiality, non-disparagement and other matters.

When are Settlement Agreements utilised?

Settlement Agreements are mainly utilised when an employer and an employee decide to part ways. This normally happens due to redundancy, disputes, discrimination claims or other employment related conflicts. They are put in place prevent potential legal actions by both parties.

What is typically included in a Settlement Agreement?

A Settlement Agreement can include the following:

  • Information regarding the termination of employment
  • The compensation or severance pay the employee will receive
  • Provisions for confidentiality and non-disparagement
  • Waivers and releases
  • Return of company property
  • Any other specific terms agreed upon by the parties
Is a Settlement Agreement usually drafted in the favour of the employee?

The agreement terms can vary based on the specific circumstances, negotiations, and the bargaining power of both parties. Settlement Agreements are utilised to provide a mutual benefit, usually allowing the employee to receive compensation while also protecting the employer from potential legal claims.

Can the terms of a Settlement be negotiated by both parties?

Yes, you may negotiate the terms of the agreement. This can include aspects such as the amount of compensation, the wording, and more. It is encouraged to seek legal advice previous to entering any negotiations to ensure your best interests are protected.

Can I change my mind after I have signed a Settlement Agreement?

Once both parties have signed the agreement, it typically becomes legally binding.

Can a reference be incorporated into the Settlement Agreement?

Yes, you can discuss the inclusion of a reference from your employer as part of the Settlement Agreement.

Can I raise a grievance or discrimination claim prior to signing a Settlement Agreement?

In most cases, when you sign a Settlement Agreement means you waive your right to pursue legal action against your employer for claims mentioned in the agreement. Nevertheless, if there are indications of duress, fraud or some other irregularity in the agreement process, you might have grounds to contest it.

Should I seek legal advice when signing a Settlement Agreement?

Given the uniqueness of each situation, it’s important to seek guidance from an employment lawyer to understand how the law relates to your particular circumstances. For additional details or inquiries, please reach out to us at 01245 228115.

Get in touch with our settlement agreement solicitors in Chelmsford

If you want to find out more about the services we can offer you, please feel free to get in touch with our settlement agreement solicitors in Chelmsford.

Call us
Main number: 01245 228141

Email us
Main email: deana@gepp.co.uk

We’ve handled just about every kind of employment issue for senior executives, junior employees and everyone in between.

We’ve handled just about every kind of employment issue for senior executives, junior employees and everyone in between.

Our Employment Law experts

Alexandra Dean
Partner
Nadia Fabri
Associate Solicitor
Karen Fresle
Legal Secretary
Jemma Bennett
Senior Paralegal
Josh Fresle
Trainee Solicitor
Alexandra Dean
Partner
Jemma Bennett
Senior Paralegal
Josh Fresle
Trainee Solicitor
Nadia Fabri
Associate Solicitor
Karen Fresle
Legal Secretary

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If you want to find out more about the services we can offer you, please feel free to get in touch.