How is a compromise agreement different to a settlement agreement?
Compromise agreements are now known as settlement agreements.
Why ask an employee to sign a settlement agreement?
When terminating the employment of an employee, you should consider asking your employee to sign a settlement agreement.
A settlement Agreement is a legally binding contract between you and your employee settling any claims that they could have against you for the termination of their employment.
Will a settlement agreement protect my business from a claim?
Providing the agreement is correctly drafted and your employee has received independent legal advice, a signed settlement agreement should prevent your employee from bringing any claims against you in an employment tribunal.
However, a settlement agreement does need to meet certain conditions before it is legally binding, so you should ensure that the agreement and any negotiations are dealt with by a specialist employment solicitor.
How much will it cost?
We can draft a legally binding settlement agreement for you and deal with negotiations on your behalf with the employee’s solicitor, all for a fixed fee. Please contact us for a quote and to discuss how we can help you.