Settlement agreements

Settlement Agreement Solicitors

Employees leave a job for many different reasons, sometimes due to disputes, sometimes redundancy, sometimes amicably. A significant number of employees are now offered a settlement agreement (formerly known as a compromise agreement) by their employer, not just where there is a dispute. For a settlement agreement to be legally valid, the employee must have received independent legal advice.

We have experienced employment lawyers in our offices in London, Sevenoaks, Bromley and in other locations in Surrey and Kent.

Please get in contact if you need an employment lawyer to advise on your employment settlement agreement. We can often offer a same day service, which employees often want.

How do settlement agreements work?

Settlement agreements are legally binding contracts, the purpose of which are to ensure that the employee waives their rights to pursue their legal claims (except any personal injury claims neither party are aware of) against their employer in return for a sum of compensation. They  deal with all aspects of the termination of an employment relationship agreement.

The employer may also use the agreement to protect themselves, e.g. by adding confidentiality clauses and restrictions on competition.

In order to be legally binding an employee must obtain independent legal advice on the agreement and we can assist in that regard. Your employer will usually offer to make a contribution towards the cost of that advice.

Things to look out for:-

• You need to ensure that all payments that you expect to receive are specially cited in the settlement agreement (especially if there is an entire agreement clause)
• Clauses that introduce new restrictive covenants for example, that were not included in your contract and for no additional consideration (payment)

Who pays your fees?

In terms of fees, assuming you are happy with the offer that has been made, and do not therefore require any advice over and above advice on the meaning and implications of the settlement agreement that has been provided to you, then we can normally agree to act for you for the fixed lawyer fee contribution provided by the employer.

If you require assistance with a settlement agreement please contact Nina Francis on 0203 831 2664 or email Nina on nina.francis@wellerslawgroup.com

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