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Settlement Agreements

Article Written by Sue Berry on 15th February 2016. Revised 23rd July 2017.

Sometimes situations occur in the workplace where, despite using management effort to attempt to resolve issues, the organisation decides that ending the employment is the best way forward. Settlement agreements, previously referred to as compromise agreements, are used in this situation.

It's important that both the employee and the employer understand exactly what the settlement agreement is and what it means. Whilst either party can request a settlement agreement, it is normal for the employer to initiate this action.

Settlement agreements normally occur between an employee and an employer. However it is also possible to reach an agreement with former employees or job applicants in order to stop them bringing a claim to an employment tribunal.

Settlements are legally binding and therefore need to be drawn up and negotiated in a proper manner. The employer must be represented by a competent adviser and the employee must be offered legal assistance so that they understand the details of the agreement they are entering. Because these documents are legally binding and because each needs to be individually negotiated, TimelessTime does not offer template settlement agreement documents.

If you would like further information on how to deal with the settlement or you would like assistance to draw up and manage such agreements, please email or give us a call.

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