Settlement Agreement

1st class legal advice to clients for over 40 years

Personal service to each and every one of our clients

Complete solution for all your legal requirements

Providing clear advice helping obtain your objectives

Settlement agreements are legally binding contracts that waive an individual’s rights to make a claim covered by the agreement to an employment tribunal or court.

The agreement must be in writing and they usually include some form of payment to the employee and may often include a reference. They are voluntary and can be offered at any stage of an employment relationship.

The reason it has to be a settlement agreement (rather than just an ordinary contract or agreement) is that the law gives employees special protection in these situations.

The protection means that the only valid way an employee can waive their ability to make a statutory employment tribunal claim against their employer, is through an agreement which takes a specific legal form and on which the employee receives advice from a legal adviser.

This special agreement is called a settlement agreement.

What is in a Settlement Agreement?

A settlement agreement sets out the terms that have been agreed between an employer and employee in relation to the termination of employment. This will usually involve the employer agreeing to pay the employee some money in exchange for the employee agreeing not to bring any employment related claim against the employer. The agreement will also:

Record the employment claims the employee is being asked to waive;
Record the date of termination of employment;
Record the termination payment to be made to the employee;
Contain provisions as to the tax treatment of the termination payment, and an indemnity from the employee that they will be responsible for any tax which is due over and above what the company actually deducts;
Contain standard provisions on return of property, confidentiality and not making derogatory statements about the company after termination;
Contain a clause providing that the company will contribute a sum of money towards the employee’s legal fees (which the legal adviser invoices directly to the employer).

There may also be further terms that are individual to the employee concerned.

Legal Requirements

The agreement must be in writing;
The agreement must relate to a particular complaint or particular proceedings.
The employee must have received independent legal advice on the agreement and in particular on its effect on their ability to pursue the statutory rights in question.
The adviser must be identified in the agreement.
The adviser must have insurance in relation to the advice.
The agreement must state that the conditions regulating settlement agreements in the relevant legislation have been met.
The employee and adviser must both sign the agreement.

Call our friendly team today on 0345 2413100 or email us for more information

Our Employment Law Experts

Lee Pashen - Director / Solicitor

T: 0345 241 3100

Marianne Tyndall - Solicitor

T: 0345 241 3100

If you would like more information please contact our team by filling out the form below.

Five star outcomes from Charles and his team at CP Law. I have enjoyed quality service and cost efficiency for over 10 years.
N Wiszowaty

Employment Law Insights from CP Law

Employment Law

Discrimination in the workplace

The law protects you against discrimination at work, including: There are various types of discrimination and it is against the law to discriminate against anyone

Employment Law

Long COVID – Is it a disability?

A disability is defined as a physical or mental impairment that has a long-term and substantial adverse effect on a person’s ability to do normal

Employment Law

What is Unfair Dismissal?

What is Unfair Dismissal? Unfair Dismissal is the legal term used when an employee is dismissed by their employer and this dismissal may be unfair.

Connect with us

Wokingham Office

2 Anvil Court,
50 Denmark Street,
Wokingham,
Berkshire,
RG40 2BB

0345 241 3100
mail@cplaw.co.uk

Sunningdale Office

Unit 10,
New Boundary House,
London Road,
Sunningdale,
Berkshire, SL5 0DJ

0345 241 3100
mail@cplaw.co.uk

Commercial Property
Employment Law Berkshire
Residential Property
Divorce Solicitors
Family & Matrimonial Law Berkshire
Private Clients
Conveyancing Solicitors Wokingham
Solicitors Wokingham
Solicitors Berkshire

Website by AdvantEdge Agency

© Copyright 2024. All rights reserved – CP Law Solicitors is the trading name of Charles Platel and Partners (Solicitors) Limited a limited company in England & Wales authorised and regulated by the Solicitors Regulation Authority (www.sra.org.uk) – Company No 3056856, VAT No 664689382 & SRA No 192187. Please note that the term “partner” or “partners” of CP Law Solicitors indicates a Director of CP Law Solicitors, or an employee or consultant who is a lawyer with equivalent standing and qualifications.

Settlement Agreement

1st class legal advice to clients for over 40 years

Personal service to each and every one of our clients

Complete solution for all your legal requirements

Providing clear advice helping obtain your objectives

Settlement agreements are legally binding contracts that waive an individual’s rights to make a claim covered by the agreement to an employment tribunal or court.