Settle claims against your employer

When your employment ends, you may sometimes be asked to sign a Settlement Agreement formerly referred to as a Compromise Agreement. BRR Law, based in Scunthorpe’s Laneham Street, have many years of experience advising on and drafting such agreements on behalf of employees.

Why might an Employer offer a Settlement Agreement?

When the decision is taken to end an employment relationship, it can be a time of uncertainty. Disputes can arise over the decision to dismiss. Directors can fall out over future business strategy or investment decisions. You may feel your position is untenable or that your employer wants you to resign and is forcing you to do so. A Settlement Agreement provides an opportunity for a clean break for both the Employer and Employee.

What is a Settlement Agreement or Compromise Agreement?

A Settlement Agreement is a legally binding document that brings an employment relationship to an end. The agreement has the effect of compromising any claims an employee might have against the employer arising out of their employment or its termination in return for an agreed sum of money payable by the employer to the employee.

When entering into a Settlement Agreement it is a legal requirement that the Employee obtains independent legal advice and the solicitor providing that advice signs a certificate confirming their eligibility to provide the advice. It is common practice for the employer to pay for the advice.

We are careful to explain things to you in plain English, without legal jargon so that should you decide to sign the agreement, you understand exactly what you are agreeing to.

However, signing this type of agreement may not always be the best route, as your individual circumstances could dictate alternative options.

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