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Settlement Agreements
We understand that considering a Settlement Agreement can be a daunting prospect. Our approachable and experienced solicitors will explain the details in a clear and concise manner, helping you to make informed decisions for your future.
What is a Settlement Agreement?
A Settlement Agreement, previously known as a Compromise Agreement, is a legally binding contract between an employer and an employee. It is commonly used to manage the termination of employment or to resolve workplace disputes.
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What You Can Expect in a Settlement Agreement
In exchange for signing a Settlement Agreement, employees may receive:
- Notice pay
- Redundancy payments (if applicable)
- Outstanding holiday pay
- Bonus or other benefits
- A tax-free ex gratia payment
Settlement Agreements often include confidentiality clauses and may also secure a reference from the employer.
How You Benefit
- No obligation to sign: You are not required to accept a Settlement Agreement, and we can discuss alternative options.
- Employer-paid legal advice: Employers typically contribute towards the cost of independent legal advice, but this is limited to advice on the agreement itself.