Settlement agreements, formerly known as compromise agreements, are agreements between employers and (former) employees wherein the employee agrees to leave their job and forego their right to bring legal action at a tribunal in the future. Normally, the employee receives compensation as a result.
Settlement Agreements in Glasgow, Scotland
As the employee, you are legally required to take independent legal advice prior to signing a settlement agreement. In most settlement agreements, there is a clause which stipulates that the employer will make a payment towards meeting this cost. In most cases, then, the employee will not have to pay a penny to take legal advice regarding their settlement agreement.
As stated above, these are legally binding agreements between employees and employers. The legal implication of a settlement agreement is that the employee waives their legal rights to take a dispute to a tribunal. As a result, it is mandatory for the employee to take legal advice in order that they are aware of the precise ramifications of this.
In most cases, the employer compensates the employee for waiving this right. In some cases, there may be additional conditions included in the agreement such as clauses preventing the employee from speaking to the press.
When am I required to enter into a Settlement Agreement?
If your relationship with your employer is irretrievably broken down, or if you and your employer wish to bring your employment contract to an amicable end, your employer may offer a settlement agreement. Often, these are accompanied by payments of compensation.
These agreements are required to be tailored to your precise situation. Employers cannot use the same agreement for more than one employee. As such, it’s vitally important you take legal advice before signing.
We can advise both employers and employees on the fairness of a proposed agreement, advise on what is an appropriate level of compensation and offer advice on other matters arising.
Settlement Agreement Lawyers Glasgow, Scotland
To speak to one of our expert solicitors about your settlement agreement, please call David Hutchison on 01413336750 or David McElroy on 01413336750 , or complete our employment law enquiry form opposite.
