What Must a Settlement Agreement Contain?
If you have been consulted by your Employer in relation to a redundancy situation and have been given a settlement agreement it is vital that you seek independent legal advice from a relevant advisor in relation to this to ensure it is legally binding.
Your settlement agreement should contain certain information which the relevant advisor will need to ensure is contained in the agreement and which you will be made aware of.
Such information includes the names of the parties involved, the amount of the redundancy payment and any other benefits or holiday accrued that you are entitled to. One of the most important aspects of the agreement is whether it contains a provision which waives the ability to claim statutory rights. The rights that are being waived must be specifically included, such as those relating to unfair dismissal, redundancy payments, discrimination claims or holiday pay.
The Employments Rights Act provides that an agreement which purports to exclude or limit an employee’s right to bring proceedings in relation to statutory rights is in fact void and therefore prevents an employee from being able to waive their rights. However, one exception to this is where there is a settlement agreement in place. This is why is it essential that you receive the right advice and understand your rights on where you stand when your employment comes to an end.
If you want to speak to us about your settlement agreement and to ensure that you are protected and know exactly what you are signing please contact our Litigation Department on 01273 582271 and we will be happy to talk you through the process.
