Settlement Agreements

If you have reached an agreement with your employer to terminate your employment then you may be asked to sign a settlement agreement. This may arise in circumstances such as voluntary redundancy, early retirement or dismissal. Settlement Agreements used to be called Compromise Agreements and still may be referred to as such.

It is very important that you take independent legal advice before signing a settlement agreement (be it a voluntary redundancy settlement agreement or a dismissal settlement agreement) in order to look at the implications and understand the effect of signing such an agreement. Whilst settlement agreements are in some cases mutually beneficial, employers may try to use settlement agreements to stop you from making a much larger claim against them should you have grievances with the manner of your dismissal.

You may also be asked to sign a settlement agreement which you feel is not fair; in this case, you can refuse or dispute the agreement in the hopes of a better offer, however it is vital that you do so after consultation with a legal professional to ensure that you understand your rights and entitlements, and the best way to approach the negotiation process.

Once you have signed a Settlement Agreement you are unable to take action against your employer. It is therefore important to seek legal advice prior to signature to ensure that you know what you are entitled to and what you are agreeing to before you sign.

The team at Beecham Peacock are able to give you comprehensive employment law advice and ensure that you do not miss out on any entitlement or agree to any term that is not in your best interests. Our team of employment law specialists will assist and guide you throughout this entire process, protecting your interests and making sure you are fully aware of the consequences of any agreements you sign.

Contact our Newcastle office today on 0191 232 3048 for more information about settlement agreements.