What is a Settlement Agreement?


MTG Solicitors Making Legal Sense.png

Running a business is tough as it is, whether your an expanding enterprise or one that is re-structuring, making the right decision, more specifically following the right processes can mean the difference between "make or break". One really important area that is so often misunderstood is "Settlement Agreement".

  • The agreement must be in writing;
  • The agreement must relate to a certain complaint or proceedings;
  • The employee must have received independent legal advice on the agreement (including the agreements effect on their ability to pursue the statutory right/s in question);
  • The independent legal adviser must be identified in the agreement;
  • The independent legal adviser must have insurance; and
  • The agreement must state that the necessary regulatory conditions regarding settlement agreements have been met.

Yours staff are the assets of your business, but what about when they are not?

Are you dealing with challenging employees that are causing your business difficulties? Do you want to dismiss an employee but are afraid of possible costly and lengthy claims of unfair dismissal or discrimination (amongst others)?

On average, 17,000 claims are submitted to the employment tribunal each month. These claims range from unlawful discrimination (where compensation is not capped and in 2011/12 an employment tribunal awarded compensation of £4.4 million in a claim of race discrimination) to unfair dismissal (where compensation is, generally, capped at £87,700 or one year's wages).

What can I do to avoid liability?

A Settlement Agreement (formerly called a Compromise Agreement), can settle a dispute or provide a release or waiver of claims in order to limit potential liability of your company. This could help your company to reduce costly legal fees to defend a claim.

Under a Settlement Agreement, an employee (or worker) agrees not to pursue certain statutory employment tribunal claims against a company.

Settlement Agreements are usually used to record an employee's terms of departure where the employee is to receive a termination payment in return for the employee waiving all actual and potential statutory (and usually common law) claims against the employer.

What makes a valid settlement agreement?

It is important that the settlement agreement meets certain conditions:

If you are looking to enter into a settlement agreement, contact ourselves today and we can give you our independent legal advice. We can also assist you in preparing a settlement agreement to stop unnecessary headaches caused by problematic employees.

Connect With Us

Request a Meeting Today »

Request a Short, Free Meeting With Us Today.

Bold labels are required.

Contact Information
terms of use.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish a solicitor-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Visit Our Offices

Warley Chambers
2nd Floor
Warley Road
Hayes, Middlesex
UB4 0PX
United Kingdom

Phone: 020 3026 2548
Fax: 020 8561 2800
Map & Directions


Boom Zone
22 Uxbridge Road
Ealing
W5 2RJ
United Kingdom

Phone: 020 3026 2548
Fax: 020 8561 2800
Map & Directions


Contact:
Phone: 020 3026 2548
Fax: 020 8561 2800
Email: info@mtgsolicitors.com
DX 44655 (HAYES) Middx

Emergency Numbers:
Conveyancing: 07949 721 099
Crime: 07944 133 788
Family/Domestic Violence: 07944 133 982
Housing: 07506 626 262
Immigration: 07904 787 255

We speak your language!

Languages spoken by our expert team

Albanian

Bulgarian

Dari

Greek

Gujurati

Hindi

Mandarin

Punjabi

Romanian

Russian

Spanish

Urdu

  • Conveyancing Quality Lawyers
  • Criminal Litigation Lawyers
  • Immigration Accreditation Lawyers
  • Super Lawyers
  • Best Lawyers
Back To Top