Your employer: “Please sign this paper agreeing not to take us to an Employment Tribunal in future, and we’ll pay you some money in return.”
You: “Hmmm. I’m not sure.”
Us: “This is not an easy decision to make yourself, so the best advice is… get advice.”
In England and Wales, this document is called a Settlement Agreement. In Northern Ireland, it’s a Compromise Agreement.
A settlement agreement is legally binding without having to go to an Employment Tribunal – but only if you’ve taken advice from an independent solicitor (like us, hint, hint), and when the solicitor has also signed the agreement.
They are commonly used when (or just after) you’ve been made redundant, so it’s important to take advice early.
Your solicitor will tell you:
- Whether your employer has offered you enough money
- Whether you are entitled to compensation (for example, if you’ve been discriminated against)
- Whether your contract contains restrictive covenants that impact what you do next
If your employer hasn’t offered you a settlement agreement, your solicitor could initiate the conversation and handle negotiations for you.
They will also ask your employer to provide a reference you can use when applying for other jobs.
From this, you can see the decision is not as easy as you might think.
Your employer: “Please sign this paper agreeing not to take us to an Employment Tribunal in future, and we’ll pay you some money in return.”
You: “Thank you – but first I will talk to Paul Doran Law.”
Us: “Happy to help.”
Need help?
For a FREE assessment of your claim, call 0808 168 7288 or fill in the contact form on the top right of this page.
We have already helped thousands of people to win millions of pounds in compensation.
You have a choice of ways to pay, including ‘no win, no fee’.
We will also discuss the best methods of funding your case and seek to reach a solution that best suits your needs. This can involve a “no-win, no-fee” agreement if appropriate.