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Has your employer asked you to sign a settlement or termination agreement?

Has your employer asked you to sign a settlement or termination agreement?

Has your employer asked you to sign a settlement or termination agreement?

If so, we can help you with independent legal advice.

If you have been offered a redundancy package, a payment to facilitate a mutual termination of your employment or a payment to settle an ongoing dispute at work, you may be asked by your employer to sign a settlement agreement (previously known as a compromise agreement).

What is a settlement agreement?

A settlement agreement is a legally binding contract in which an employee, in return for a financial payment (or other consideration), agrees to waive all rights to pursue claims they may have against their employer or former employer (such as unfair dismissal, a pay dispute or discrimination). 

For the agreement to be enforceable, an employee is required to take independent legal advice on its terms and effect, in particular the effect on the ability to pursue a claim to the employment tribunal or court. An employer will usually cover the cost for advice or make a contribution towards your legal fees.

How we can help

By signing the agreement, you are waiving all rights so it is important that all agreed terms are clearly set out and that all payments due to you under your contract are included (such as salary to termination date, notice, holiday and bonus/commission).  We can advise you on the terms and provide an adviser certificate that will be required to complete the process. 

We can also:

  • suggest the amendment or deletion of clauses that are unreasonable;
  • advise on the reasonableness of any redundancy, ex-gratia or compensation payment;
  • suggest amendments if applicable to any ongoing obligations under your contract such as non-compete and non-solicitation clauses that may affect your ability to secure new work on leaving;
  • ensure that your employer is providing a reference for you; or
  • agree terms of an internal and/or external announcement to be sent before you leave.

We can support you through the process with a fast and efficient service with same day appointments available online (subject to availability).

For a free initial conversation, or to book an appointment, please contact Jo Cullen, Head of Employment on 0208 4757401 or Josephine.Cullen@edslaw.co.uk

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