Settlement Agreements

Settlement Agreements (formerly Compromise Agreements)

What does a Settlement Agreement do?
A Settlement Agreement sets out a full and final settlement for the benefit of you and the employee when an employment contract is ended. Settlement Agreements secure a 'clean break' for both employer and employee providing a practical and effective solution to the ending of a contract.

Advantages of Settlement Agreements:

Avoids costs of tribunal proceedings
Sets out terms agreeable to both employer and employee
Employee has the certainty of a settlement sum
Employer is protected against employment claims.
It is customary for an employer to pay the legal costs incurred by the employee, but only if the employee enters into the Settlement Agreement and the employer may limit costs to a specific amount.


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