A settlement agreement, previously called a compromise agreement, is a legally binding contract between an employer and an employee.
The employer promises various payments, usually beyond what the employee is legally entitled to, in exchange for the employee agreeing to be bound by the agreements terms and not to make a claim in a court or tribunal. Settlement agreements are becoming an increasingly common way to end an employment relationship.
In order for a settlement agreement to be binding you must receive advice from a suitably qualified lawyer or authorised member of a trade union (who is identified in the settlement agreement), who needs to confirm that a contract of insurance in relation to the advice exists.
The settlement agreement covers a wide range of matters from compensation and bonuses to job references and confidentiality. All of the terms must be considered in detail to ensure they are acceptable to the employee. If any of the terms are not acceptable then the option exists to return to the employer and ask for the existing terms to be altered or new terms to be added.
It is standard for the employer to pay a fee directly to the employees chosen independent legal adviser in relation to the provision of advice to the employee. We will review the settlement agreement in accordance with the requirements and will not charge more than the employers agreed contribution for this service.
We have offices in Worthing, Rustington, Steyning, Arundel and Goring and suitably qualified staff who can provide the independent advice required in relation settlement agreements, formerly called compromise agreements.