Settlement Agreements

What are Settlement Agreements?

Settlement agreements broadly do what they say, namely they settle the disagreement between the parties. They list the agreed terms of the settlement which usually involves one party giving up the right to bring or continue legal proceedings against the other in return for compensation, which is usually financial. Standard terms include paying any outstanding pay, forfeiting discrimination allegations and sometimes involve agreeing the terms of a reference.

Where proceedings have been issued, the settlement agreement will usually specify that the employee is to write to the employment tribunal to withdraw their claims, make any application for the claims to be dismissed, and not to oppose or appeal the dismissal of the claims.

Legal Advice & Negotiation Representation

Settlement agreements must fulfil certain criteria to be valid:

• They must be in writing and relate to the proceedings.
• The settlement agreement must state the relevant statutory provisions which have been satisfied.
• Most importantly, in order for the settlement agreement to be valid, the employee must have received advice from a relevant independent adviser as to the terms and effect of the proposed agreement.
• The legal adviser must be specifically named in the settlement agreement and have the relevant insurance in respect of loss arising to the employee because of the advice.

Therefore it is imperative that an employee takes legal advice before signing. Our Barristers are able to review your settlement agreement and to advise you on the terms. We are expert negotiators and can help with a strategy for reaching a settlement.