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Settlement Agreements

Settlement Agreements, formerly know as Compromise Agreements, are becoming more common and are intended to be used to reach an amicable agreement to terminate an employee’s employment.

The purpose of the Agreement is to provide certainty between the employee and the employer.

Once the Agreement is signed by both parties it will become a legally binding agreement and prevent the employee from bringing a claim against the employer except in limited circumstances.

If you are offered a Settlement Agreement you will need to obtain independent legal advice before signing the agreement.

It is also important to remember the employer is responsible for the legal costs of any Settlement Agreement.

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NJL solicitors are authorised and regulated by the Solicitors Regulation Authority. Registered number 541980. Solicitor Nigel Johnson LLB (Hons). (PHP)

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