Your relationship with your employer may have changed in an instant or, it may have deteriorated over time. Regardless, if the time has come to cease working together or you have a potential dispute with your current employer, it may be appropriate to enter into a settlement agreement. Importantly, settlement agreements are paid for by your employer.

What are settlement agreements?

Settlement agreements are a way for employers and employees to come to an agreement once their working relationship is at an end. They are voluntary, negotiable and legally binding. Formerly known as compromise agreements they are a written agreement between an employee and an employer, which brings the employment to an end on mutually-agreed terms.

Under a settlement agreement, an agreed sum is paid by the employer to the employee as compensation to the employee, and in return, the employee agrees not to pursue a work-related claim.

The expert solicitors at Aly & Hulme associates work on settlement agreements every day and are in the perfect position to advise you.

Why should I enter into a settlement agreement?

Settlement agreements are beneficial to both employers and employees. The employer can avoid expensive court action. The employee, on the other hand, does not have to face the financial risk of pursuing an employment tribunal claim. The employee can further secure their position by including a written reference as part of the agreement.

Before agreeing to negotiate a settlement agreement, speak to the employment law solicitors at Aly & Hulme Associates. We have the experience and knowledge necessary to ensure that you get the best deal for you.

We can advise you about your options when entering into a settlement agreement, and we will guide you through the complete process. Your solicitor will ensure that your agreement does not include overly onerous terms, and that you receive advice tailored to your exact requirements.

How do Settlement Agreements (Compromise Agreements) Work?

Settlement agreements can be entered into before or after tribunal proceedings have begun. Employers are not allowed to pressurise employees into signing settlement agreements.

A settlement agreement is an agreement between two parties – the employer and employee (or other). It cannot be signed by groups of individuals – each employee must enter into an individual agreement. A settlement agreement will include a variety of clauses and terms. These ordinarily relate to notice periods and remuneration, for example holiday pay and unpaid salary or bonuses.

We highly recommend having your settlement agreement terms checked by the specialist solicitors at Aly & Hulme associates to ensure you are not compromised in any way.

What goes into a settlement agreement?

Before a settlement agreement can be legally binding, it must meet the following conditions:

  • It must be in writing.
  • It must relate to a specific complaint.
  • It must state that the statutory conditions regulating settlement agreements have been satisfied.
  • the employee must have advice from an independent legal adviser, normally a solicitor (the agreement will be invalid in the absence of independent legal advice on the employee’s part).
  • the statement must be signed by the employee and employer (and usually the employee’s solicitor).
  • ACAS state that a minimum period of ten days is required between the terms of the settlement agreement being proposed by the employer and the employment coming to an end.

    The solicitors at Aly & Hulme Associates will assist you with the complexities involved in the settlement agreement process. We can ensure the agreement is made expediently and with your best interests at the centre of the decision-making process.

    The solicitors at Aly & Hulme Associates will assist you with the complexities involved in the settlement agreement process. We can ensure the agreement is made expediently and with your best interests at the centre of the decision-making process.

    Why Choose Aly & Hulme Associates?

    Modern life is hectic. We know you’re busy. we know your hours are often awkward and we know you have enough on your plate. That’s why our founding principle is to help you deal with your legal needs quickly, efficiently and effectively.

    We specialise in dispute resolution and whilst both partners have appeared in Court on thousands of occasions we will strive hard to avoid litigation wherever possible to provide you with a robust and cost-effective service.

  • We are approachable, professional and commercially minded.
  • We cover the South East and North West and will meet you at your convenience.
  • We have policies and procedures to ensure your matter is always taken care of.
  • We will always put your needs first and do our utmost to protect and further your best interests.
  • We are regulated by the Solicitors Regulation Authority and fully insured for your protection.
  • Contact our Employment Solicitors in Manchester Today

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