(Previously named ‘Compromise Agreements’).
A settlement agreement is a legally binding agreement whereby an employee can sign away rights to make employment related claims against an employer/ex employer, usually in return for a compensation package.
A properly drafted settlement agreement can provide the peace of mind that the employee/ex-employee will not take legal action against them in respect of their employment. It is vital to make sure the settlement agreement is not only legally compliant, but that it protects the business by ensuring for example, due consideration is given to restrictive covenants, potential damage via social media following the employee’s exit and that the package is commensurate with the circumstances.
A settlement agreement can often facilitate in a tax efficient, amicable exit from a business. An employee has to be independently legally advised, normally by a solicitor for the settlement agreement to be legally binding.
At ConwayMcColl Solicitors in Bramhall, Stockport, we are expert in drafting settlement agreements for businesses. We also advise employees on the implications of the settlement agreement they have been offered. This can all be done on a fixed fee basis.