Settlement Agreements

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Settlement Agreements


Written by Sue Berry on 9th May 2017. Revised 25th March 2020.

2 min read

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. We are however both comeptent and able to draft and manage the process of implementing settlement agreements with managers.

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.