What is a Settlement Agreement?

As you may know, we’re employment law solicitors.

We act for employees who have a dispute with their employer.

If your employer has done something unlawful, you have the legal right to take them to the employment tribunal. However, employers generally don’t want that to happen, and will do whatever it takes to prevent it.

They could negotiate a COT3 agreement through Acas (the Advisory Conciliation & Arbitration Service). Or they could ask you to sign a settlement agreement, and pay you a sum of money in return for you giving up your right to take them to the tribunal.

If your employer offers you a settlement agreement (or a compromise agreement in Northern Ireland), it won’t be valid unless you take independent legal advice.

The independent legal advisor (that’s us!) will help you negotiate with your employer.

It would be useful if you collect all the relevant information before you talk to us. That includes:

  • Your contract of employment
  • Date of the dispute
  • Notes taken at relevant meetings
  • Copies of relevant emails and other documents

We’ll tell you:

  • How much your case is worth
  • Whether you are entitled to claim extras such as holiday pay or a good reference to help you find another job
  • What items you can negotiate in return for more money, such as a promise to keep the agreement confidential, or a guarantee that you won’t work for a competitor for a certain period of time

If your employer’s offer is reasonable…

Make sure to get their offer in writing before you accept it.

You must then take independent advice from a legal advisor. (That’s us!) The settlement agreement is not binding without this which means the employer will usually contribute to or meet all of your legal fees for this advice.

We’ll ensure the agreement gives details of the specific dispute, and exactly what you and your employer are agreeing. It should also state that the agreement meets the rules.

If your employer’s offer is unreasonable…

We will help you continue to negotiate, or decline their offer and continue on the path to the tribunal.

If you agree the offer…

If you agree, your employer will have to pay what is agreed in the settlement.

If your employer breaks the agreement…

If you go to the tribunal and your claim is put on hold for a set period of time, but your employer doesn’t fulfil their part of the agreement within that time, you have the right to revive your claim.

If your employer breaks the agreement later, you can make a breach of contract claim against them at the county court.

Further reading

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About Us

Employment Law Solicitors Belfast & Newcastle
Paul Doran Law - The Solicitors For
Employees In Belfast And Newcastle

Employment Law Solicitors Belfast & Newcastle
Paul Doran Law - The Solicitors For Employees In Belfast And Newcastle

Paul Doran Law are employment law specialists who only act for employees and claimants who find themselves in dispute with their employees. we specialise in assisting employees to ensure that we can obtain the best results for you.

Our solicitors are admitted to the roll in England and Wales and we can act for clients in the Employment Tribunals in Northern Ireland and Scotland.