Settlement Agreements

Impartial legal advice

At Settlement Agreement Solicitors London our objective is to provide you with no obligation free advice regarding the answers to your Settlement Agreement questions, for example: why a Settlement Agreement is a good idea and how Settlement Agreements are used to settle employment claims under English Law and to answer any other questions you may have on Settlement Agreements.

What is a Settlement Agreement?

A “Settlement Agreement” is a way in which employees and Employers can legally settle a dispute arising under a contract of employment. Section 203 of the Employment Rights Act 1996 ("ERA") stops an Employer in the UK from forcing an employee to sign away their legal rights except where a Settlement Agreement is used. Negotiating a Settlement Agreement is often straightforward but in some cases can prove to be more difficult. For instance, the employee may put a value on his or her claims above the amount the Employer is prepared to offer under the Settlement Agreement even though such amount may be above the employee's strict legal entitlement.

The requirements of a settlement Agreement

There are strict conditions as to how a Settlement Agreement must be drawn up if it is to be legally binding. These are:

• The Settlement Agreement must be in writing

• It must relate to a particular complaint

• The adviser must have professional indemnity insurance

The Settlement Agreement must identify and be signed by the adviser

• And the agreement must state that the conditions regulating Settlement Agreements under the Act are satisfied

• The employee or worker must have received advice from an independent solicitor as to the terms and effect of the proposed Settlement Agreement in particular, its effect on his/her ability to pursue his/her rights before an Employment Tribunal.

It is also very important that the employee should get truly Independent Advice on all aspects of the Settlement Agreement otherwise it may be open to either party to challenge the validity of the Settlement Agreement later in court.

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