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SETTLEMENT AGREEMENTS

A Settlement Agreement (formally known as a Compromise Agreement) is a legally binding contract made between an employee and employer.

A Settlement Agreement (formally known as a Compromise Agreement) is a legally binding contract made between an employee and employer.

This usually provides for a severance payment by the employer in return for your agreement not to pursue any claims in a Tribunal or a Court. The employer will usually require you to keep the terms, for example the amount and the surrounding circumstances of your contract’s termination, confidential.

    PGM Solicitors Employment Law

    These agreements must be drafted in a very specific way in order to ensure that they are binding on the employee. The employee has to receive independent advice before signing and generally the employer will pay a reasonable contribution towards the cost of that advice.

    Commencing settlement discussions can be a sensitive matter and if you as an employer initiate them, it is important to do so in such a way that ensures if talks break down, they cannot be used against you. In appropriate cases, employers can benefit from ‘without prejudice’ status or from having a ‘protected conversation’ – although each has its limitations.

    PGM Solicitors Dispute Resolution

    We advise on: 

    • When to offer a settlement agreement
    • ‘without prejudice’ and ‘protected conversation’ status
    • Appropriate terms to propose
    • Drafting settlement agreements and negotiating terms
    • Compromising tribunal proceedings
    PGM Solicitors Swansea

    Read our blog here on the benefits of a Compromise Agreement.

    Contact our specialist team on 01792 468684 or email enquiries@pgmsolicitors.co.uk for further advice.

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