A Settlement Agreement is a legally binding contract between an employee and an employer setting out the terms and conditions agreed between the employee and the employer when there is a dispute to be resolved between them or alternatively when the contract of employment is to be terminated.
Settlement Agreements are used in a number of instances such as redundancy, mutual agreement, dismissal or even to settle an Employment Tribunal case.
In order to have a valid Settlement Agreement, you must obtain the advice of someone professionally qualified, such as a solicitor before signing a Setlement Agreement, as generally the agreement is final. It is generally the case that your employer will pay for you to consult a solicitor prior to signing the agreement. Signing a Settlement Agreement will exclude you from raising any other clam against your employer in the Courts or Employment Tribunal.
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