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Settlement Agreements

A settlement agreement is used to achieve a clean break between an employee and employer at the end of the employment relationship. It is a legally binding document whereby an employee agrees to settle/waive any claims they may have in return for an agreed sum and other benefits.

Settlement agreements cover claims such as:

  • Unfair dismissal
  • Discrimination
  • Redundancy
  • Unpaid wages

Any claim relating to personal injury that you are not already aware of at the date of the agreement and claims relating to accrued pension rights are usually not affected by the settlement agreement.

There are various conditions that need to be met for the document to be valid:-

  • It must be in writing
  • It must relate to a specific complaint or complaints or particular proceedings
  • The employee must have received independent advice (usually from a solicitor)

By signing a settlement agreement an employee will then not be able to pursue an employment related claim against an employer hence why it is important to receive the right legal advice before signing.  If you feel you may have a potential claim against your employer, it is imperative to let your solicitor know all the details to know whether the financial offer and other terms are fair.

Our employment solicitors can help you to negotiate a fair settlement with your employer, advise whether your employer has broken any employment laws and if necessary identify your prospects of success in an employment tribunal or at court.

Whilst there is no minimum time period in law to consider a settlement agreement, the ACAS Code of Practice recommends 10 calendar days for an employee to consider the proposed terms and to receive independent legal advice.

When your employment is ending, it can be very stressful.  People often feel uncertain or confused about whether they should sign a settlement agreement. 

We can help guide you through the process and advise you of your options.  For more information please contact Lisa Aitken on 01926 491181 or by email:

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Lisa Aitken

News and media

  • News
    • Posted on May 21, 2020
      Despite the Government’s financial support scheme initiatives, mass redundancies are being announced as the coronavirus crisis takes its toll on the aviation industry.

      Whilst businesses are doing all they can to ensure survival, news that you are losing your job is distressing at any time, let alone when we are in the midst of a global pandemic.
    • Posted on May 5, 2020
      The Government’s launch of the Coronavirus Job Retention Scheme (“CJRS”), to enable employers to furlough workers rather than make mass lay-offs and redundancies has no doubt given employers breathing space and saved jobs. It is however, becoming clear that many companies will need to consider restructuring to survive this economic crisis.
    • Posted on March 4, 2020
      As of 6th April 2020, the written statement of terms and conditions of employment will become a day one right!

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