A Settlement Agreement, otherwise known as a Compromise Agreement, is a written agreement which is used to terminate employment on agreed terms. The agreement generally lies between an employer and their employee and sets out that the employee agrees to waive any claims they have against the employer.
As an employer, there are many aspects to consider when proposing a Settlement Agreement. At Hodgkinsons Solicitors, Skegness, our Team of expert Employment Law Solicitors can guide you through the process of drafting your Settlement Agreement to ensure that it is legally binding. In order for the agreement to be compliant, there are conditions which must be met:
- It must be a written agreement;
- The agreement must address a particular complaint or dispute;
- The employee must have already received legal advice;
- The employee must receive a considerable amount of time to consider what is being proposed; this is usually a minimum of 10 days.
- The agreement is not applicable for Personal Injury or Pension Claims;
- The proposal and process must be fair, and the ACAS Code of Practice on Discipline must be followed, as failure to do so may present the grounds for a claim of unfair dismissal.
Settlement Agreements usually include some form of payment to the employee by the employer and may also include a reference. Agreements such as these are voluntary, therefore, parties are not obliged to accept the terms which are initially proposed. Our Employment Solicitors can help to advise you on the terms of the agreement and propose what steps you should take next. Depending on your circumstances it may be suitable to enter into negotiations, make proposals and counter proposals until both parties reach an agreement. If it is acknowledged that no agreement is achievable, our Solicitors are still able to provide guidance.
Our Team of Employment Law Solicitors can advise both employers and employees when it comes to Settlement Agreements. The Department can advise employers who wish to propose a Settlement Agreement on their legal obligations, drafting and serving the agreement and on any following negotiations. Alternatively, if an employee is served with a Settlement Agreement, Hodgkinsons Solicitors can help them to understand their position and the options which are available to them and therefore, advise on how to resolve the matter depending on the individual circumstances. Before negotiation, it is recommended that employees seek advice as to how much the Claim is worth. Your specialist Solicitor can help you to determine the level of settlement you are owed and help you throughout the process to obtain what is deserved.
Warning: It is important to note that a Settlement Agreement will not be legally recognised unless it is signed by a Solicitor or other qualified legal adviser who has been instructed to advise you.
Hodgkinsons Solicitors, Skegness, have a Team of Dispute Resolution Solicitors who are experts in Employment Law. Our specialist Lawyers have the ability to represent both employers and employees situated in Skegness, rural Lincolnshire and the East Midlands to include Boston, Louth, Lincoln and Grimsby. Our Employment Solicitors understand the impact which Employment Claims can have on an individual’s circumstances which is why they will always aim to settle your matter in a straightforward, efficient and timely manner. To get in touch with a member of the Team call Hodgkinsons on 01754 897150 or simply complete an online contact form and a member of the Team will be in touch.