FAQs For Settlement Agreements | Paddle & Cocks LLP

Settlement Agreements: Your Questions Answered

Whether you’re an employer looking for up-to-date information on your legal rights, or an employee unsure of the details when it comes to the complexities of settlement agreements, gaining clarity before entering into any confusing territory is advisable. When entering into such sensitive procedures, reliable legal advice and general assistance is highly recommended, and this is where Paddle & Cocks LLP Solicitors come in. Well-versed on the topic of settlement agreements and other employment law specifics, continue reading and allow us to take you through the most prominent legal questions.

What Is A Settlement Agreement?

Put simply, a settlement agreement can provide a clean break for both an employee and employer, settling the termination of an employee’s contract or outcome of another workplace incident by mutual agreement. Legally binding between both relevant parties, The transaction will involve a severance payment provided by the employer, in return for the employee agreeing not to pursue corresponding legal action.

In most cases, the employer will usually require anyone in agreement to keep the terms private, and this could pertain to everything from the payment amount, to the circumstances of an incident. Legal professionals become important early-on, as a specialist Employment solicitor will be able to advise you on the merits of your claim and the amount of money you would be liable to attain. As well as this, they can explain in detail the process and likely outcome.

What Are The Key Requirements For A Valid Settlement Agreement?

A valid settlement agreement must meet a number of conditions, produced in writing and relating strictly to a particular claim or incident. The employee who is entering into the agreement must have crucially received legal advice from a relevant independent adviser on the terms and effect of the proposed settlement agreement - with our advisors happy to assist.

Breach of contract, unlawful payment deductions and flexible working issues are among the most common criteria, though there are many applicable contractual or legal instances besides.

What Happens If I Refuse?

A settlement agreement needs to be carefully considered before it’s signed, and employees are under no obligation to immediately agree to such an offer. It may be possible with the advice and assistance of a solicitor to negotiate a better agreement, be that in financial terms, or differing conditions.

If an employee and employer are unable to reach an agreement, the employee may be able to make a claim against the other party in a tribunal. Having assisted professionals in sectors as varied as banking, hospitality and property development, we’re happy to be approached.

At Paddle & Cocks LLP Solicitors, we have your needs accounted for - no matter your commercial aims. Our large team of expert solicitors have the knowledge to achieve a positive outcome, advising, managing and negotiating every step of the way. With an emphasis on transparency and flexibility, you can rest assured that there are no hidden fees, only impeccable legal advice when you contact our trusted professionals.