Settlement Agreement Solicitors​

Solicitor Settlement Agreement FAQs

• I am being offered a settlement agreement as a result of a grievance, is this common?

  Raising a grievance or going through an employment tribunal matter after a workplace dispute is not an easy process. In many cases, resolving the matter through a settlement agreement is the way to go in order to amicably conclude employment issues.

• Can I ask my employer for a settlement agreement?

  Yes, you can request your employer to offer you a settlement agreement as a way to resolve an employment dispute.

• What is the purpose of a settlement agreement?

  A settlement agreement is also known as a ‘severance’ or ‘redundancy agreement’. It used to be called a ‘compromise agreement’, because the employer and the employee would compromise to reach a mutually understood agreement.

  A settlement agreement is a legally binding contract that achieves the following:

  • Restricts employees from suing their employer after they have received a sum of money
  • Disallows an employee to make an employment tribunal claim or any other type of claim that has been listed in the settlement agreement

  There is a legal requirement for the employee to receive independent legal advice for a settlement to be legally binding.

• What are the legal requirements of a settlement agreement?
  • A settlement agreement must be given to an employee in writing
  • It must relate to a particular proceeding(s) or complaint(s)
  • It must be signed by the employee after the employee has received independent legal advice
  • The legal adviser, in our case Solicitors, must be identified and insured
  • The agreement must state that the requirements regulating the settlement agreement have been satisfied.
• What rights do I have as an employer and does a settlement agreement remove those?

  All employees have rights under English law. We cover these rights briefly as follows.

  • Contractual rights – Set out in an employment contract and cover job title, holiday entitlement, right to be paid a salary, and any other benefits as well as the notice period.
  • Common law rights – General law rights that outline how you should be treated by your employer. 
  • Statutory rights – These derive from UK statute and if you have any employment issues, the claim can only be pursued in an Employment Tribunal. These rights protect you from:
    • • Unfair dismissal
      • Right to a statutory redundancy payment
      • Right not to suffer unauthorised deductions from your wages
      • Right not to be discriminated against based on certain prohibited grounds such as marital status, gender, racial origin, sexual orientation, national origin, disability, religion, trade union membership and age.
      • Right to receive a minimum wage
      • Right to receive maternity and paternity rights
      • And a lot more
• Why should you use a solicitor like Freeman Harris to review your settlement agreement?

  Settlement agreements are legal documents and can include clauses that discuss Acts and Regulations, which would not be familiar to you. Our job is to simplify the agreement and explain it to you in laymen’s terms.

  It is also a legal requirement that you get professional legal advice on the agreement and for it to be signed by the advisor before it is signed off.

  According to the Employment Rights (Dispute Resolution) Act 1998, advice can only be given by a qualified lawyer, a qualified trade union official or a qualified advice centre worker, covered by indemnity insurance.