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Settlement Agreements

The Employment Law solicitors at Banner Jones are specialists in both advising on,  and preparing settlement agreements.

Settlement agreements (previously known as compromise agreements) are contracts that can be entered in to by an employer and an employee to settle any employment rights or claims that the employee may have.

They are usually used to terminate an employee’s employment, and if negotiated properly, are a very useful tool for employees and employers as they enable the employer to ensure that no future claims will be made by an employee, whilst allowing an employee to receive a financial payment (very often tax free) as compensation for giving up such rights. They save the need for employment tribunal proceedings which can be expensive and time-consuming, and may attract potentially damaging publicity.

In order to be binding, there are several requirements that must be fulfilled, however, the most important is that the employee must take independent legal advice on the contents and the effect of the agreement before agreeing to enter in to it.

Watch the video below of our employment expert, Katie Ash, explaining and answering some questions about settlement agreements.

Video originally featured here.

The Employment Law solicitors at Banner Jones are specialists in advising on, and preparing, settlement agreements. We can help advise on:

  • The tax implications of the compensation to be paid
  • The inclusion of an indemnity for any tax
  • The provision and content of a reference
  • Restrictive covenants (whether existing or new) and confidentiality, as well as restricting comments after termination
  • The types of claims that shouldn’t be included in a settlement agreement

We understand that once a decision has been made to enter in to a settlement agreement, time is of the essence and we are able to work within very short deadlines, without any compromise on our level of service to you.

 

Areas Covered

If you have an employment problem, often it is something else for consideration within your case, so it is always worth contacting an employment law solicitor and finding out for certain.

At Banner Jones we can advise you on your legal rights regarding employment law, where they relate to the following:

  • Disciplinary and Grievance matters
  • Unfair Dismissal
  • Redundancy Advice
  • Discrimination in the Workplace
  • Bullying and Harassment
  • Ill health and Disability matters
  • Family Friendly Rights  
  • Contracts of Employment and Policies
  • Restrictive Covenants
  • Employment Tribunals
  • Settlement (Compromise) Agreements
  • Protected settlement Discussions
  • Trade Union Representation
  • Mediation
  • Funding your Employment Law Case
See all

Our Helpful Guides

Our expert employment law solicitors are highly experienced and will treat each case uniquely depending on your circumstances. Our employment law specialists achieve solutions through confidential settlements and are always on hand to provide support when resolving employment law problems. We have worked on many employment law cases and each individual receives the upmost care and consideration throughout the case.

Watch Our Video

Employment Law - Katie Ash on Settlement Agreements

Play video Employment Law - Katie Ash on Settlement Agreements

Katie Ash explains and answers some questions about settlement agreements.

97% of our clients would recommend us to a friend
(Ongoing Client Survey)

We have used Banner Jones for employment advice for over 20 years and the team have always found the best approach to resolve our problem

Mr. Richard Kay, Operations Manager, Stagecoach East Midlands

Katie is understanding, considerate and very kind and thoughtful in her manner.

Mrs L, Old Tupton

Very professional and showed empathy throughout.

Mr B, Walton

Professional yet personal & understanding. Excellent service

Mr P, Chesterfield

Extremely pleasant and friendly receptionist. My intention was to ring around several solicitors to get quotes, but after speaking to receptionist was happy to book an appointment.

Mrs M, Old Tupton

Banner Jones were really helpful, friendly and professional. Would definitely recommend and would not hesitate in using again.

Mrs C, Chesterfield

Straightforward explanation of each section of the settlement agreement with ample opportunity to ask questions and have “plain English” discussion. An open and friendly, but professional manner was evident from the advisor.

Mr R, Clay Cross

It was a real pleasure to meet with Katie Ash; she made my “getting legal advice” simple, straightforward with compassion yet professional.

Mr P, Rise Park

We’re really grateful for the work you did for us. 10 out of 10!

Mr & Mrs S, Bridlington

Very easy to make appointments, very personal service from all people at Banner Jones, my solicitor was very friendly and put me at ease. If I needed a solicitor again, Banner Jones would be the first on my list.

Mr C, Dronfield

Frequently Asked Questions

Do we have to do anything else in our recruitment adverts?

You need to be able to justify if you are asking for certain levels of experience. Advertising for a bus driver who is safe and has had previous experience is one thing advertising for a bus driver with 10 years’ experience is another. The first option leaves your job advert open for all ages to apply. The second rules out individuals who may be in their early twenties.

 Other points to consider when recruiting new employees:

  • Ensure whoever is interviewing potential employee’s scores interviewees on their skills and competencies as opposed to their age.
  • Although they are not discriminatory themselves consider removing any reference to age on your job application forms.
  • Don’t ask a potential employee for a physical fitness test unless you require them. 

Once you have selected an appropriate employee ensure managers and staff are trained to monitor and avoid any discriminatory behaviour. Also make sure it is clear within any policies you have that discrimination in any form is unacceptable. Ensure managers are fully trained in diversity issues and that they are able to deal with discriminatory issues that arise within the workplace.

Do we need to worry about these requirements if we employ people in their 50’s and 60’s?

Yes you need to be aware of these requirements if you employ anyone of any age. They affect every area of employment as well as the recruitment and selection process. The requirements not only make it unlawful to discriminate on the grounds of age but also harassment whether it be intentional or unintentional or to victimise an individual. 

You need to worry not only about your own actions but also your fellow employees who must be discouraged from making offensive or unkind comments about age or anything in between.

 As with other areas of discrimination if your employee can demonstrate that there has been a difference in treatment which is due to discrimination it is solely down to you the employer to show otherwise or for you to prove that you have done everything in your power to stop such discrimination. There are no limits to discrimination awards and often they include an aspect for suffering, failure to do so can be expensive. 

 

How does age discrimination requirements effect the recruitment process?

When you are recruiting employees you need to ensure you are not discriminating for or against anyone due to their age. This means you cannot advertise specific age requirements in any of your job adverts unless you can justify them.

What are the conditions of age discrimination?

In 2011 legislation new legislation was introduced making it unlawful to treat anyone differently due to their age except if it could be justified or falls within one of the exemptions to the law. The retirement age of 65 has now been phased out meaning employers can now only forcibly retire workers if it can be justified.  

 

What year did the requirements of age discrimination come into effect?

The Employment Equality (Age) Regulations came into effect in October 2006. The retirement age of 65 was phased out between April 2011 and October 2011.

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Katie Ash
Head of Employment Law
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