Settlement Agreements Explained

What do you know about settlement agreements?

If you’re not familiar with this term, don’t worry—you’re not alone.

If you are in a sticky work situation, or you are being made redundant or there is an employment dispute, you might want to find out what settlement agreements are and how they can help both employees and employers in certain situations.

The more information you have, the better off you’ll be in any future discussions about settlement agreements with your employer or an employee who might need one. This guide will show you what they are, when they are needed, and how to go about creating them if it comes down to that.

What is a Settlement Agreement?

A settlement agreement is a written contract between an employer and employee in which both parties agree to settle their dispute over matters such as wrongful termination, unlawful discrimination, or breach of contract for money or other benefits. Settlement agreements are commonly used in situations where an employee believes he or she has been wronged by his or her employer; however, employers may use settlement agreements to protect themselves from litigation related to issues like sexual harassment.

How Do I Get One?

If you’re having a dispute with your employer, a settlement agreement might be a good way to resolve it. Read on for more information about how they work and who should consider requesting one. Settlement agreements aren’t just for employees—if you’re an employer, you might also want to consider asking your employee to sign one before parting ways.

Why Do I Need One?

A lot of companies don’t give their employees, or former employees, any kind of severance pay. Sometimes it’s too expensive for them to do so; sometimes they dismiss people they feel are more trouble than they’re worth or whose face no longer fits. That can be really unfair and a settlement agreement may redress this.

How Much Is It Going To Cost Me?

As a general rule, settlement agreements cost much less than going to court—although they’re never free. Most legal fees are negotiable, and a good lawyer will work with you on a payment plan that suits your budget. In many cases, an employee's costs will be paid for by the employer.

Where can I get advice about settlement agreements in Reading?

If you need advice about settlement agreements in Reading, we’re here to help.

Our experienced team of legal advisors at Hewetts Solicitors offers a wide range of legal services and can be contacted on 0118 957 5337.

Please ask for Oliver Kew in the first instance.

Published on 02/12/2021

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