A Settlement Agreement (previously known as a Compromise Agreement) is a written contract whereby your employment with your employer terminates on agreed terms. Typically you will receive a compensation payment in exchange for you waiving any potential employment claims against your (former) employer. In essence it financially compensates you whilst limiting your employer’s liability so that a line is drawn under the end of the employment relationship with a ‘clean break’ being achieved. Settlement agreements can also be used for redundancy and retirement scenarios as well as being a way to settle contentious situations without the rigmarole and cost of making a claim at an Employment Tribunal.
If you receive a settlement agreement you are required to get independent legal advice for it to be valid. This is where we can help guide you through the process of reviewing it with you and, if appropriate, negotiating on its terms.
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