Been offered a settlement agreement? Be sure to get advice.

Posted by Amir Jaleel

Increasingly, we are seeing employers using settlement agreements (formerly called compromise agreements) when an employee and an employer are in disagreement with each other or there are issues surrounding the employment.

These can often be used as an attempt to manoeuvre an employee out of the company whilst avoiding any legal action.

This must always be a case of ‘employee beware‘.

It is vital to realise that these agreements are in effect a legally binding contract between you and your employer. The contract must therefore comply with the relevant sections of employment legislation especially where it protects your rights.

We would therefore always advise that you seek appropriate legal advice and appoint an employment lawyer to oversee the process and ensure you are not forced into a corner unnecessarily.

In some cases, these agreements may affect areas of confidentiality, your ability to work in the future due to restrictive covenants and even whether you will be able to get a suitable reference going forward.

So, if you find yourself in a position where you are being asked to consider a settlement agreement, especially if this is being rushed through on redundancy or dismissal, please contact us for fast, efficient advice on what to do next.

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