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Settlement Agreement Guidance Notes


Settlement agreements (previously called compromise agreements) are documents that set out the terms and conditions agreed by the employer and the employee to settle a potential employment tribunal claim or other court proceedings. The employee agrees not to pursue claims against the employer, in return for a financial settlement. The objective for the employer is to avoid the cost of lengthy or divisive litigation arising out of an employment tribunal, as well as avoiding any reputational damage. A Settlement Agreement contract is legally binding on the parties.

The sections covered in the Guidance Notes include:

  • What are settlement agreements?
  • Validity of settlement agreements
  • Independent Adviser
  • Tax implications of settlement agreements
  • ‘Without prejudice’ and ‘Subject to Contract’
  • Protected conversations
  • References
  • Time to consider a settlement agreement
  • Confidentiality
  • Claims that cannot be settled by a settlement agreement

These Settlement Agreement Guidance Notes provide additional information to assist employers in the use of the Simply-Docs suite of settlement agreements. See also the Information Page on Settlement Agreements, which can be found here.

Settlement Agreement Guidance Notes is part of Employment Documents. Just £35.00 + VAT provides unlimited downloads from Employment Documents for 1 year.

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