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Settlement Agreements for Employees

  • The Law Society of Scotland

Problems at work can be stressful and even impact on your home and family life. If your employer has breached your employment rights, entering in to a Settlement Agreement is one way to resolve the situation.

At Claphams Solicitors, our dedicated Employment Lawyers will provide you with expert advice if your employer offers you a Settlement Agreement. We can also support you in negotiations with your employer to ensure that you get the best outcome for your case. To discuss your specific circumstances, contact our team today.

What is a Settlement Agreement?

A Settlement Agreement, previously a Compromise Agreement, sets out the terms on which an employment contract comes to an end. In most cases a sum of money is paid to the employee in return for giving up their right to sue their employer for breach of their employment rights.

A properly drafted Settlement Agreement ties up all the loose ends with your employer and gives you peace of mind that a dispute has been settled, whether you continue to work for the organisation or not.

Matters to include in a Settlement Agreement

Your Settlement Agreement can require you to waive your right to bring a statutory claim, such as for unfair dismissal, discrimination and holiday pay, in exchange for money.

But Settlement Agreements can also deal with other matters relating to your employment, such as:

  • Entitlement to shares;
  • Income protection, private health insurance, and other benefits;
  • Company property, including cars, computers, and intellectual property;
  • References and announcements to staff;
  • Restrictions on:
    • Working for competitors,
    • Enticing clients and employees away,
    • Information that can be disclosed to third parties, and
    • Making certain unfavourable or critical comments about the parties;
  • Certain claims for personal injury; and
  • Certain rights in connection with occupational pensions.

Signing your Settlement Agreement

Before you enter a Settlement Agreement it is important to understand how it affects your future rights. It is therefore a legal requirement for employees to take advice from an independent adviser before they sign a Settlement Agreement. We are also required to sign the Agreement to certify that we have given you appropriate advice before the Agreement is binding.

It is usually your employer’s responsibility to pay our fee for advising you about, and signing, your settlement agreement.

Contact our Employment Lawyers in Clarkston, Newton Mearns, Giffnock, Netherlee, Eaglesham, Carmunnock, Stewarton & Southside Glasgow 

If you believe that your employer has breached your employment rights, Claphams Solicitors will offer friendly and straightforward advice to help you put things right.

For employment lawyers based in the Southside of Glasgow, contact Claphams Solicitors today by phoning us on 0141 620 0800, or make an online enquiry.

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Please note we are a firm of Scottish Solicitors helping clients across Scotland and cannot help you if you are based in England.