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FDR Law Legal Clinic - Settlement Agreements

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Q: I am being made redundant from my job and a Settlement Agreement has been mentioned, what is this?

A: A Settlement Agreement is a legal document used to terminate an employment contract on the terms that you have agreed with your employer.

Signing a Settlement Agreement will mean that you will waive any rights to make a future claim to an Employment Tribunal or Court on the matters that are specifically covered in the document. In addition, the Settlement Agreement may include details of any payment offered from the employer and possibly information relating to a reference to aid you in securing future employment.

Whilst the initial proposal to offer a Settlement Agreement may have been verbally discussed with you, one of the requirements for it to become legally binding is that it must be put into writing.

You will be advised at this stage to seek independent legal advice before you sign the Settlement Agreement and that this document should be signed with your solicitor.  Your employer will usually offer to contribute financially towards these initial legal fees, and your solicitor will be required to sign the adviser’s certificate as proof that you have sought legal advice.  It is worth noting that any additional legal advice you request from your solicitor is likely to be payable by yourself, for example for any negotiations on the severance package.  Your solicitor will be able to provide you with an estimate of any additional charges in advance.

For Settlement Agreement advice please contact our Warrington office on 01925 230000

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