Settlement Agreements

Settlement agreements for businesses are a legally binding document which can be used to terminate an employment contract. They used to be called ‘compromise agreements’ and still may be referred to as such.

It may be preferable to offer a settlement agreement to outgoing employees, because it provides employers with the peace of mind that no claims can be made by the employee once it is agreed and signed by the parties.

Beecham Peacock are here to help with all of your Employment Law problems.

Employer settlement payments are common in redundancy situations, but may also be used as a mutually acceptable resolution to unfair dismissal or discrimination claims in the workplace.

The clear cost-benefit of a settlement agreement for an employer is that it avoids the risk of a current or former employee bringing a claim in the employment tribunal. Even an unmerited claim can be costly to defend, both financially and in terms of the time cost to the business and personnel. When an employee is exiting the business it is always worth considering offering a settlement agreement to provide finality.

Our specialist settlement agreement advisors can advise you on offers and negotiations, as well as drafting the settlement agreement.

Please do not hesitate to contact our employment team on 0191 232 3048 or email employment@beechampeacock.co.uk to discuss your business needs.