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Settlement Agreements

A settlement agreement is a legally binding contract between an employer and an employee. This type of agreement normally results in a waiver by an employee of his or her rights to make any claims covered by the agreement to an employment tribunal or civil court.

Settlement agreements can be proposed by either an employer or an employee and can be offered at any stage of an employment relationship

They are most commonly used to end employment on agreed terms or to resolve an ongoing dispute, for example, a dispute over holiday pay.

In order for a settlement agreement to be legally binding, certain conditions must be met. The main ones are:

It must be in writing.
The agreement must relate to a particular complaint or proceedings.
The agreement must be signed by the employee.
The employee must have received independent legal advice on the terms from a lawyer or a certified and authorised member of a trade union.
The adviser must be identified in the agreement and the adviser must be insured.
The agreement must state that the statutory conditions regulating settlement agreements have been met.

Usually there is a process of negotiation during which both sides state their proposals or counter proposals until an agreement is reached or until it is clear that no agreement can be reached. Settlement agreements are voluntary on both sides and neither party has to agree to it or enter into discussions about them. Conversations about settlement agreements are normally conducted on a without prejudice basis. They are also sometimes mentioned as part of a protected conversation

Where the parties are unable to reach an agreement, the settlement discussion cannot usually be referred to as evidence in an employment tribunal or in other court proceedings.

We are able to provide assistance with drafting binding settlement agreements on behalf of employers and do so normally on a fixed fee basis.

Our team are highly experienced in this area and if you require any help of assistance please contact us directly on 0113 3229222

To find out more about settlement agreements please see our specialist site here:

Victoria Horner

Associate, Employment law

0113 887 4673
vhorner@consilialegal.co.uk
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Craig S

Very quick and reassuring response from Andy and the team here after a very difficult situation at work. Referred from Citizen Advice Bureau because all other firms seemed less bothered about my needs versus their fees. Andy gave great advice and helped explore my options so I could respond appropriately without being cornered by my work. Ended up with a very amicable outcome! In difficult times you need people like Consilia to help guide and support you... thanks guys

Mirra Riz

Consilia Legal, and Marie in particular, have helped me a number of times with thorough and caring legal advice. This last time she helped me negotiate my way out of a difficult work situation. As a result of her candid advice I was able to: a) Leave amicably by resigning b) Secure 3 months pay in lieu of notice c) Obtain written confirmation a standard reference would be provided. Wonderful work as always and much appreciated! I would add there was a detailed plan in place should an amicable separation not have been possible, but this was not needed in the end due to the aforementioned candour. Always best to find an amicable solution.

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focused and friendly professional service. Very responsive to queries and extremely helpful guides during a challenging time. I was referred to Andy Boyde at Consilia Legal, by a friend - I am so grateful they introduced me. Andy was first class.

Daniel Sherman

Marie was an absolute star in helping me put together a case with a former employer,gave me so much guidance when other solicitors simply wouldn't even attempt to look into the claim. Can't thank her enough

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