Jarmans Solicitors help with Settlement Agreements - Employer

For many employers, a settlement agreement is an attractive alternative to an employment tribunal. Settlement agreements are legally binding documents between an employer and an employee and are usually entered when there is a grievance or termination of employment.

As settlement agreements are legally binding contracts it’s important that employers and employees obtain independent legal advice before signing any documentation. Jarmans Solicitors’ employment law team have extensive experience of advising and drawing up settlement agreements for businesses of all sizes.

Offering an employee with a grievance a settlement agreement and payment provides the opportunity for both employers and employees to have a clean and confidential break and avoids the often long and drawn out process of attending a tribunal. It also allows for an employee to end their contract of employment on good terms and with a reference. In some cases, the employee can even continue their employment on the proviso that the terms of the settlement and the original grievance are kept confidential as settlement agreements are essentially non-disclosure agreements.

Settlement agreements can also be utilised instead of following redundancy or disciplinary processes and can, ultimately, save employers significant sums of time and money.

Key points to consider

• Settlement agreements are voluntary and the agreement to sign must be mutual
• They must be in writing
• The contract is legally binding, thus if an employee still decides to take a claim to a tribunal or court any award can be offset  by sums already paid under the settlement  agreement
• All parties involved must obtain independent legal advice before signing
• They usually contain several sections which include outstanding pay and holiday pay, ex-gratia payment/compensation information, waiver of claims, and confidential information

If you are an employer who is concerned that an employee may take a grievance to tribunal or who is considering restructuring your business, contact our team to ensure you receive first class independent legal advice.