Continuing market uncertainty leads to an increase in job loss. Employees are often requested to sign a Settlement Agreement.
Settlement Agreement – what is it?
Kate Boguslawska, employment solicitor and Partner at Carter Lemon Camerons LLP explains circumstances in which settlement agreements may be used: ‘There are many reasons why Employers choose to use settlement agreements, most commonly, settlement agreements offer certainty that employees will not bring a claim against the Employer. They can ensure observance of confidentiality clauses and restrictive covenants. For the employee, they can offer details of a severance package, redundancy pay, in an appropriate situation also a compensation pay as well as the wording of the agreed references’.
‘Settlement agreements are highly technical documents,’ continues Kate, and therefore to ensure that employees understand the document that they sign, there is a statutory requirement that they receive independent legal advice prior to entering a Settlement Agreement. Employers usually contribute towards the costs of such advice.’
For more information download our full guide on settlement agreements here.
If you are an Employee requiring advice on terms of a proposed Settlement Agreement or if you are an Employer requiring advice on redundancy, termination of a contract of employment or drafting of a settlement agreement, you can contact Kate Boguslawska on kateboguslawska@cartercamerons.com or on 07769 308 498.
