Settlement Agreements

What is a Settlement Agreement?

A Settlement Agreement (previously called a Compromise Agreement) is a legally binding contract, often used to settle potential claims you may have against your employer, or simply to bring your employment to an end on mutually agreeable terms.

It will typically involve you agreeing not to bring any Tribunal or other court claims against your employer in exchange for an agreed sum of money and/or an agreed reference or benefits. A Settlement Agreement can also be used where employment is ongoing but both parties want to settle a dispute which has arisen between them.

How can Machins Solicitors LLP help me?

As you are likely to be required to waive your valuable employment rights to bring a claim against your employer, a Settlement Agreement will only be legally binding if you have taken independent legal advice on its terms and effect. This is why it is important that you are properly advised before you enter into a Settlement Agreement.

The Employment team at Machins are approachable and experienced. We provide comprehensive employment advice at all levels of seniority in a range of different industries. We can answer questions you might have on the agreement, for example:

• Am I entitled to a reference?
• Can I tell anyone about the Settlement Agreement?
• How long does the process take?
• What are my rights if my employer doesn’t comply with the Agreement?
• What claims may I have if I don’t sign the Agreement?

We will ensure you are properly advised about your legal position and how entering into the Agreement will affect your employment rights. Our priority will be ensuring that you are adequately protected under the terms of the Agreement, while receiving fair and sufficient compensation for your loss of employment and the surrendering of your employment rights.