Tag Archive: Settlement Agreements

Settlement Agreements (Compromise Agreements)

posted February 20, 2014

Settlement Agreements (Compromise Agreements)

I have wide experience in advising employees on the terms and effect of Settlement Agreements (Compromise Agreements).

In employment law an agreement (formerly known as a Compromise Agreement) whereby an employee or worker agrees not to pursue certain employment tribunal claims against a respondent or potential respondent to a claim.  Commonly used to record an employee’s terms of departure where they are to receive a termination payment in return for the waiver of all actual and potential statutory (and common law) claims against the employer.  For a valid waiver of statutory employment rights, certain statutory conditions must be met:

  • The agreement must be in writing.
  • The agreement must related to a particular complaint or particular proceedings.
  • The employee must have received independent legal advice on the agreement and in particular on its effect on their ability to pursue the statory rights in question.
  • The adviser must be identified in the agreement.
  • The agreement must state that the conditions regulating settlement agreements in the relevant legislation have been met.

Pre-termination negotiations and settlement agreements

posted October 18, 2013

Under the Enterprise and Regulatory Reforms Act 2013 (ERRA 2013) compromise agreements will be renamed ‘settlement agreements’ and employers will be given more freedom to have discussions with employees about a proposed settlement outside the context of an existing dispute.