Our employment solicitors offer straightforward legal advice to assist employees on their Settlement Agreements.
What is a Settlement Agreement?
A settlement agreement is a legal agreement between you and your employer which usually brings your employment to an end, or compromises certain claims you may have against your employer. In exchange for entering into the agreement you will usually be paid a sum of money by your Employer.
Your employer may offer you a settlement agreement for a variety of reasons. It may be you are offered a Settlement Agreement to settle a dispute between you and the Employer, or as a way of reaching an agreement for you to leave your employment.
Why do I need a solicitor?
In order for the Agreement to be legally binding the employee must have received independent legal advice on it. An employer will normally contribute a fixed sum in costs towards the employee’s legal costs.
What should I be looking for in the settlement agreement?
Your employer should always pay you your contractual notice pay. It is worth checking in your contract of employment what that is. You should also be paid a sum in relation to your outstanding holiday pay. Normally, employers will also pay an ex gratia compensation figure for you losing your job, which should be free from tax up to a value of £30,000. Your employer should also provide you with a reference.
At Ellis-Fermor & Negus, our specialist team of employment lawyers offer sympathetic and easy to understand advice. Our aim is to make the process as simple as possible.