Settlement Agreement - Management & Sales
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.
This particular agreement is designed to be used for sales and management staff, where ‘post termination restrictions’ (or restrictive covenants) are required. In this settlement agreement, there are references to commission and bonus arrangements.
A Settlement Agreement contract is legally binding on the parties.
Clauses can be extended or deleted in accordance with Employer-Employee negotiation over employment termination.
A Settlement Agreement is voluntary, and the employee needs to be given reasonable time to consider an offer of a settlement agreement. ACAS recommends an employee is given a minimum period of 10 calendar days to consider the terms of the settlement agreement and seek professional advice.
This Standard Settlement Agreement template is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.