Employer-employee relationships can go sour at anytime and when it proves impossible to resolve problems through talking or formal procedures then this is where a settlement agreement can help.
A settlement agreement is a legally binding contract between the employer-employee whereby the employee waives any right to bring any financial claim against the employer usually in return for a financial payment. It can also set out the terms on which the employment terminates, however, they can also be used to settle disputes mid-contract or at any time without the need for terminating employment.
Please below a list of reasons as to why settlement agreements are becoming ever more popular:
- Quicker and cheaper alternative of going to an Employment Tribunal
- Versatility – either party can propose a settlement agreement be explored
- Terms are usually reached via the process of negotiation.
- The employer will contribute up to £750.00 plus VAT towards employees’ legal costs
- An employee must receive Independent Legal Advice on the settlement agreement
Here at KJ Cox the Employment team are able to assist with settlement agreements in the following ways:
- Provide the independent legal advice
- Negotiating on your behalf as to the terms of a settlement agreement
- Drafting of the settlement agreement for your company
- Liaising on your behalf as to the proposal of a settlement agreement
The Employment team at KJ Cox are on hand to provide you with clear, accurate and realistic advice as to your specific employment matter or explain what is required to ensure you are compliant.