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.
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.