We advise both employers and employees on the drafting and negotiation of settlement agreements. Such agreements provide for any employment-related claims an employee may have against their employer to be settled and waived in return for an agreed financial settlement.
Settlement agreements are most commonly – but not always – entered into on termination of employment. They may arise either in highly contentious situations where an employment tribunal claim is otherwise likely to be brought or has already been brought, or in less litigious situations – for example, where an employer may want to offer an enhanced redundancy payment in a voluntary or non-contested redundancy situation.
Although contractual claims may be settled in a more straightforward agreement, settlement agreements are the only means of ensuring that any statutory employment claims such as unfair dismissal or different types of prohibited discrimination are waived. Settlement agreements require certain conditions to be satisfied in order to be legally binding. One of the key legal requirements is that the employee must receive independent advice from a solicitor on the terms and effect of the settlement agreement.
At Walbrook Law LLP, we are highly experienced in:
- Advising both employers and senior executives on the negotiation of key terms leading up to a proposed settlement agreement.
- Drafting and negotiating settlement agreements for employers, with the appropriate level of detail and contractual provisions tailored to the particular situation and the client’s requirements.
- Advising employees on the terms of proposed settlement agreements and negotiating changes to specific provisions as may be required.