A settlement agreement is a legally binding contract used to resolve employment disputes or bring employment to an end on agreed terms. It typically involves an employee waiving specific legal claims in exchange for compensation or other agreed conditions.
Settlement agreements can be a valuable tool for both employers and employees, allowing disputes to be settled privately, fairly, and efficiently, without the stress and cost of employment tribunal litigation.
A settlement agreement is a written contract between an employer and an employee that usually:
When drafted correctly, a settlement agreement protects both parties and ensures the terms are legally enforceable. A settlement agreement is only legally binding once the employee has received independent legal advice to ensure that they understand the terms and effect upon them of entering into a settlement agreement.
Settlement agreements are often used by employers to:
A well-structured settlement agreement allows employers to:
At Warners Solicitors, our specialist employment team advises employers across Kent, Sevenoaks, London and beyond on drafting and negotiating robust settlement agreements. We can help you:
