For Business

Settlement Agreements

Settlement Agreements

A Settlement Agreement (previously known as Compromise Agreements) is an agreement commonly signed by an employee and employer on termination of an employee’s employment. The Agreement terminates the Contract of Employment on the terms set out in the Agreement. By signing the Agreement an employee agrees to waive their rights to bring certain claims against their employer, normally in respect of their employment and/or termination of their employment.

In order for the Agreement to be legally-binding employees are required to seek independent legal advice on the terms and effect of signing the Agreement.

The employer will normally pay a contribution towards an employee’s legal fees for taking advice on the terms and effect of any Settlement Agreement. Generally, this contribution will not include any legal fees incurred in negotiating the terms.

We are experienced at drafting, reviewing or advising on Settlement Agreements and negotiating terms with employees on behalf of the employer to conclude matters swiftly and cost effectively.

If you require a Settlement Agreement or would like to discuss the termination of an employee’s employment, please contact us.


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