Settlement Agreements for Employers and Employees
For businesses, sometimes it is better to offer a settlement to an employee so that he/she leaves the business safe in the knowledge that you will not be sued. We will make legal agreement watertight without being overly complicated.
For employees, negotiated settlements can be a good way to end an employment relationship. But you need to make sure that the settlement agreement represents a good deal for you – or as best as possible in the circumstances – and that you understand all the implications of signing a settlement agreement.
We can help you draft and negotiate the settlement agreement you need for your circumstances that best meets your needs.
How Do Settlement Agreements Work?
When an employee enters into a settlement agreement, they agree that they will not bring any employment claim, such as a claim for unfair dismissal or discrimination against their employer. In return for entering into this agreement, an employer typically makes a settlement payment to the employee (in addition to normal contractual payments) or provides a reference for a potential new employer.
It is possible to enter into a settlement agreement at any point in the employment relationship. Usually however, they are used when an employer is seeking to resolve a dispute with an employee, or as part of a voluntary redundancy package.
The terms of the agreement will be negotiated by the employer and employee, and then inserted into a formal settlement agreement.
The Employee must receive independent legal advice on the terms and effect of the agreement – without this, the agreement is not valid.
The settlement agreement must be drafted correctly and be watertight against claims. If an agreement is not drafted correctly, although the employer has paid out compensation to the employee under their agreement the employee may still be able to bring a claim and keep the money already paid out to them.
If you have been asked to sign a settlement agreement, specialist advice is essential to make sure that it is in your best interests and reflects your needs. Thornber Employment Law can help with this, with years of experience in drafting accurate and clear settlement agreements.
Contact Us – Settlement Agreements Legal Advice Fife and across Scotland
With Ben Thornber, you get someone who has the know-how, personality and practical no-nonsense style to advise you on any settlement agreement and deliver the results you need. Based in Dunfermline, Ben advises businesses and individuals in Fife and across Scotland. Give Ben a call on 01383 27 2000 or fill out our online enquiry form to arrange your free initial discussion.