Settlement agreements are legally binding agreements between employees and employers which set out the terms and conditions which apply when a contract of employment is to be terminated.
In return for a monetary sum, the employee agrees to waive certain employment rights. In particular, the employee usually agrees not to pursue a claim against their employer through an employment tribunal.
It’s important to take legal advice before entering into a settlement agreement as you are waiving legal rights.
Negotiating a settlement agreement is important to ensure you are adequately compensated for the rights you are giving away.
Each settlement agreement must be tailored to the exact circumstances of your employment situation. At Gibson Kerr, our expert employment lawyers can advise on all aspects of negotiation and drafting settlement agreements.