Settlement Agreement Solicitors for Employees

Employment Law Firm

If you are about to leave your job or have been dismissed it is likely your employer will ask you to enter into a Settlement Agreement (formerly known as a compromise agreement).When you sign a Settlement Agreement or redundancy contract, you are  essentially giving up your right to pursue a civil legal action against your employer in the future. Therefore, before signing away your rights, you must seek the advice of a lawyer experienced in employment law matters.

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In exchange for signing the agreement, your employer will normally award you a severance package, which will usually involve some form of financial incentive but can also include other items such as a favourable reference.

The employment law solicitors at Rollingsons are well-positioned to advise employees about the terms and conditions of Settlement Agreements because we also draft Settlement Agreements for employers. We know the law, we know what is fair, and we will use this knowledge to protect your best interests and ensure that in the circumstances, you are receiving the best severance package possible from your employer. In addition, we are able to provide our services quickly and effectively.

Common Issues in Settlement Agreements

Settlement Agreements are tailored to each individual situation, but commonly include the following:

  • The reason for termination: Any reason other than compulsory redundancy may affect certain insurance policies.
  • Arrangements prior to termination: These include the specific amounts of money you will be paid in salary, holiday leave, expenses, bonuses, commissions, etc.
  • Garden leave: While you may not be required to come to work during your notice period, you will still remain an employee until your termination is final.
  • Payment in lieu of notice (PILON): We may be able to negotiate the duration of your notice period, but often this is stipulated in your employment contract.
  • Termination payment: We may be able to negotiate the amount of this payment and will advise you on the tax implications involved.
  • References: How the employer responds to any future requests for references about you can be specified in the agreement.
  • Restrictive covenants and confidentiality: Employers may ask you to refrain from certain actions, such as poaching employees, disclosing confidential information or intellectual property, or soliciting the company's customers or vendors

The terms of a Settlement Agreement can affect your financial and professional future for years to come. Please do not sign an agreement without first seeking competent legal advice. In most cases, the fees are paid for by the employer.

Our London Settlement Agreement solicitors are specialists in this area and provide a very comprehensive and efficient service. Please contact us online or call 020 7611 4848 for a free initial telephone consultation with no-obligation.

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