Business Settlement Agreements

There can be no doubt that the pendulum has swung firmly in favour of employee rights, leaving an employer feeling exposed. The use of Settlement Agreements’ offers a way to find a more equitable approach, in a dismissal situation.

In a nutshell it is a legally binding agreement that cuts across employee rights and it is the only way an employee can effectively ‘contract out’ of their employment law rights – but to be legal, the employee must seek independent legal advice.

Often used when there is a dispute that could lead to an Employment Tribunal, the use of a Settlement Agreement is mutually beneficial and normally allows for a severance payment which is given in agreement not to pursue any claim beyond that point, especially in an Employment Tribunal.

Equally many employers are now using Settlement Agreements as ‘belt and braces’ when dealing with departing employees. Even when they have followed the correct process using such a legal tool is an effective way to ensure there is no possible comeback.

Whatever your reason for considering a Settlement Agreement, or if you want to find out if it is appropriate to use one, the legal team here at Caversham Solicitors is experienced in employment law and can offer you the right advice, free of legal jargon.

Contact us today for more information.

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