Settlement Agreements: Your Questions Answered

Settlement agreements are typically offered to employees as part of a protected conversation to resolve a dispute or as part of a redundancy exercise. The terms of settlement agreements can be written in technical language and confusing to those that have not been through the settlement agreement process before.

You must take independent legal advice from a relevant independent adviser on the terms and effect of a settlement agreement, and this is where Paddle & Cocks LLP Solicitors come in. We are experts in advising and negotiating settlement agreements and our employment law team includes a leading employment law solicitor, Marc Jones, who is ranked and recommended in the Legal 500 and Chambers and Partners.



What Is A Settlement Agreement?

Put simply, a settlement agreement can provide either a clean break for both an employee and employer, resulting in the termination of an employee’s employment or settle an employment law dispute (such as unlawful discrimination) either before or after an employment tribunal claim has been issued against an employer. The purpose of a settlement agreement is to prevent an employee from pursuing employment tribunal claims against an employer and normally will be provided with a compensation payment in return for the employee agreeing not to pursue such claims.

In most cases, the settlement agreement will normally require the employee to keep the terms of the agreement confidential, and this could include everything from the payment amount, to the circumstances of leading up to the agreement itself and the reason for termination of employment.

As an experienced employment law solicitor at Paddle Cocks LLP Solicitors, Marc Jones will be able to advise you on the merits of your claim and whether what you have been offered is reasonable. Marc will also explain in detail the process and negotiate the terms of the settlement agreement on your behalf.

What Are The Key Requirements For A Valid Settlement Agreement?

A valid settlement agreement must meet a number of statutory conditions for it to validly settle any outstanding or future claims that you may have against your employer. This will include claims such as redundancy, breach of contract, and unfair dismissal to name but a few. Crucially you must take legal advice for the settlement agreement to be binding and your employer will provide a contribution towards your legal costs to do this.

What Happens If I Refuse?

A settlement agreement needs to be carefully considered before it’s signed, you are under no obligation to immediately agree to such an offer and you should be given 10 days to consider it. At Paddle & Cocks LLP Solicitors we have a track record of negotiating better terms where possible for our clients..

If you are unable to reach an agreement on the terms of a settlement agreement with your employer, you may be able to bring an employment tribunal. Again, employment law team can assist you with this and represent you through the tribunal process. We represent clients in all sectors as varied as banking, hospitality and property development.

At Paddle & Cocks LLP Solicitors, we have your best interests at heart and our expert employment law team 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