What is a settlement agreement?
A settlement agreement (previously called a compromise agreement) is a legally binding agreement between employer and employee. Though they are most often used in a redundancy situation to bring employment to an end, compromise agreements can also be used to deal with a whole range of employment and contractual issues including unfair dismissal and related claims.
The agreement usually allows for a severance payment, in return for which the employee agrees not to pursue any claim or grievance in an employment tribunal. The employee must take independent legal advice from a Solicitor before signing the agreement for it be valid, this is usually paid for by the employer.
How can we help?
We provide advice to both employers and employees on settlement agreements. We will always act your best interests and regardless of who we are representing we try to avoid the time and expense of employment tribunals wherever possible.
We will also advise you on the implications of signing a settlement agreement including post-termination restrictions and confidentiality clauses.
To speak to a Solicitor in Blackpool regarding a settlement agreement call 01253 629300 or click here to contact us.