A Settlement Agreement is a written agreement between an employee and employer which ensures that the employee will not pursue claims against their employer in court or a tribunal, often in return for the payment of a sum of money. However, if your employer offers you a Settlement Agreement then there are certain considerations that you need to make.
Not all working relationships work out and whether due to a clash of personalities, poor performance or even discrimination, a Settlement Agreement can bring things to a resolution. With this in mind, it may be that your employer is looking for a quick decision when they bring you into the office and present you with a Settlement Agreement; however, it is important that you take the time to review the terms that have been offered.
You are required to seek legal advice on the terms and effect of a Settlement Agreement and generally the employer will contribute towards your fees for doing so. However, you are also likely to benefit from the expertise of an employment law solicitor who will be able to review the agreement and ascertain whether there is some scope for improvement in the terms that have been offered. If there is then an employment solicitor might be able to help you negotiate more money and a better deal.
There might be clauses in the contract that prohibit you from doing certain things such as restrictive covenants which may stop you from working with current clients or colleagues in competition with the business.
If you are considering accepting the agreement and leaving your job, then you may well be looking for alternative employment after you leave. If this is the case then it is advisable to request a clause which requires the employer to provide you with a positive reference.
If you have received a Settlement Agreement then our experienced employment law solicitors will be able to review it for you and might be able to negotiate better terms. You can call us on 020 7611 4848 to arrange a complimentary consultation.