Legal advice from David Jones, Employment Solicitor based at FDR Law’s office in Warrington Q: Why do I need independent legal advice with a Settlement Agreement? A: A Settlement Agreement is a legal document used to terminate an employment...
If you are about to leave your job or have your employment terminated, your employer may ask you to sign a compromise agreement or a settlement agreement, as it became known as in July 2013.
At FDR Law, our employment specialists are experts in negotiating and advising on severance agreements, ranging from routine pre-agreed settlements to high-value, complex deals involving share options and structured payments.
The principle behind a settlement agreement is an employer offers you financial compensation or another incentive, often beyond your contractual entitlement, to enter into the settlement agreement. In turn, by signing the agreement, you give up your right to bring an employment-related claim against your employer.
If negotiated properly, a settlement agreement can be a very effective way to ensure that you are adequately compensated for the termination of your employment without the need to bring a formal claim against your employer, which can be expensive and time-consuming. .
If you are offered a settlement agreement, you are strongly advised to get independent legal advice as soon as possible. This is sometimes paid for by the employer.
For more information, call us today on 01925 230000 or view our Client Guide - Settlement Agreements