Monday, 5 October 2020

Settlement Agreements Explained

The past few months has seen the term “settlement agreement” used more and more. So what exactly is it? John Mehtam – Head of Commercial Services explains.

A Settlement Agreement is a legally binding contract between an employee and an employer and is often used to terminate a term of employment usually to resolve a problem or a dispute. 

If as an employee you agree to a settlement agreement, you will automatically lose your right to take any potential claim you might have to an Employment Tribunal. Therefore obtaining legal advice from an independent advisor or an Employment Solicitor is an essential part of the Settlement Agreement process. 

Your legal advisor or Solicitor will need to sign the agreement to say that you’ve received advice and your employer usually pays for you to get that advice. 

If you have received a settlement agreement from your employer and want to achieve the best outcome possible from your Settlement Agreement with detailed and comprehensive legal advice, then please contact our Employment Team at employment@martinkaye.co.uk or on 01952 525984.