Settlement Agreement Solicitors
Freeman Jones Solicitors have vast experience in advising employers on Settlement Agreements formerly known as Compromise Agreements.
Settlement Agreements may be offered by an employer to an employee for various reasons.
Most commonly Settlement Agreements are offered as part of a redundancy arrangement.
However, there are many other reasons why employers offer Settlement Agreements to their employees. These might include where there is an underlying dispute; an employee may have raised a grievance; be medically unfit to return to work; not want to return following maternity leave etc.
Settlement Agreements are statutory agreements involving an offer by the employer to the employee to agree to mutually terminate their employment relationship on agreed terms. Such terms normally involve the payment of the employee’s salary to a specified date, to pay all or part of the contractual notice period and to make an ex-gratia payment which currently provided certain conditions are met, can be made tax-free up to a maximum of £30,000.
In order for the agreement to be legally binding the employee is required to obtain independent legal advice usually paid for by the employer.
Therefore, if you are an employer and wish to avoid possible legal claims arising out of a redundancy situation or any other dispute then Freeman Jones can provide you with expert legal advice and draft a suitable Settlement Agreement for your particular circumstances.