WHAT IS A SETTLEMENT AGREEMENT?
A settlement agreement is a legally binding contract in which an employee will waive almost all of their rights to make a claim against their employer. For entering into an agreement the employee will receive a payment from the employer. Settlement agreements can be extremely useful for employees and employers. You can find a useful overview of settlements, as explained by ACAS, here
HAVE YOU RECEIVED A SETTLEMENT AGREEMENT?
A settlement agreement cannot become a legally binding document until the employee has recovered legal advice from an independent solicitor. The solicitor is also required to sign the document in order to give it legal effect.
The settlement agreement essentially allows employee and employer to part ways formally and quickly. On the one hand the employee is waiving almost all of their legal rights to bring a case against the employer, either via the courts or employment tribunal.
On the other hand, the employer will usually compensate the employee fort agreeing to waive these rights. This usually means the employee will receive more than they would ordinarily be expected to under a more formal process of exiting the company.
The process appeals to both parties because it is quick, confidential, and brings certainty.
it is standard for the employer to pay the legal fee for the independent solicitor. Occasionally employers will require the employee to pay but will then reimburse them.
At ACSL Solicitors we offer settlement agreement appointments on a fixed fee basis. For a straightforward appointment we will charge only what the employer is has agreed to pay.
If there is to be ongoing negotiations then we will advise you of the fixed fee for further assistance in the negotiations.
We are able to provide appointments at our office, at your home address, or at the place of employment.