“Is my settlement agreement legally binding?”
Before answering that question, let’s look at some definitions.
Settlement is a payment in return for two parties agreeing to certain things. For employment law, one party is you – the employee. The other party is your employer.
At Paul Doran Law, we only work for employees, so we’re always on your side.
Agreement is another word for contract. A contract is a legal document confirming what the different parties have agreed to.
Settlement Agreements are known as Compromise Agreements in Northern Ireland.
Legally binding means it will be against the law to break the agreement. Both parties are ‘tied’ (bound) by what’s agreed and have to do what they have committed to. If they don’t, the wronged party can take legal action against the one who breached the contract.
What do you have to agree to in a settlement agreement?
If you have a valid complaint against your employer, they should agree to various things, such as paying you a sum of money to settle your claim.
In return, you also agree to various things, including a promise not to take your employer to the employment tribunal or other court with regard to the issue that gave rise to your claim. You receive the settlement payment in return for giving up this right.
Note that agreeing to accept a settlement is voluntary. If you don’t think the amount they have offered is sufficient, you can negotiate until you reach agreement. Ultimately, you can turn down your employer’s offer and take them to court if you prefer.
As experts in this area, we will advise you on the appropriate thing to do, and help you negotiate the best result.
What makes the settlement agreement legally binding?
As you can tell, a settlement agreement is a serious document. As such, to be legally binding, it must meet certain conditions:
- The settlement agreement must relate to a specific complaint
- You must take advice from a qualified legal adviser (such as the friendly team here at Paul Doran Law)
- The legal adviser must be properly insured (we are)
- The legal adviser must be named on the settlement agreement
- The settlement agreement must be in writing
- The settlement agreement must state that it follows the relevant statutory conditions
What this means to you
Reaching a settlement can be difficult and complex, and every case is different. You may only face this kind of situation once in your working life. On the other hand, we’ve done this hundreds of times. It’s best to contact us early on so we can give advice to help you.
Further reading
For more information on this subject, you might find our other articles useful:
- How do I request a settlement agreement?
- What NOT to do when you’re offered a settlement agreement
- Is my settlement agreement tax-free?
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We have already helped thousands of people to win millions of pounds in compensation.
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.