Settlement agreements, or previously Compromise agreements, are becoming more and more commonplace when employers let employees go.

A Settlement agreement is a legally binding agreement between an Employee and an Employer with settles claims the Employee may have arising from their employment or the termination of their employment.

When presented with such an agreement, an Employee must be advised by a qualified independent advisor, usually a solicitor, before signing any agreement. A contribution towards your costs is usually made by the Employer. 

The agreement will usually provide for a severance payment by the Employer in return for which you as an Employee will agree not to pursue any claim you may have at an employment tribunal. 

If you are in this situation, please contact our office. We will review the settlement agreement and fully advise you of the meaning and consequences of signing.