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.
Settlement agreements must fulfil certain criteria to be valid:
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.
Speak to a member of our employment team:
The Advisory Conciliation and Arbitration Service (ACAS) Code of Practice on settlement agreements specifies a minimum of 10 calendar days unless the parties agree otherwise.
Timescales for your case may vary depending on factors such as barristers’ availability, the complexity of your case, the need for additional documents and the other side’s approach. We are used to dealing with instructions quickly and adhering to tight deadlines.
There a number of advantages to negotiating a settlement agreement for an employee and an employer, including:
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