Introduction

If you have recently received a settlement agreement from your employer, it's natural to have questions and concerns about what it entails and how it may impact your future. As employment lawyers, Laboro Lawyers understand that settlement agreements can be complex and intimidating, which is why we have put together this guide to help you navigate through the process and make informed decisions.

What is a settlement agreement?

A settlement agreement, formerly known as a compromise agreement, is a legally binding document between an employer and an employee. It is a formal agreement that resolves any disputes or claims the employee may have against the employer, usually in exchange for certain benefits, such as a financial settlement or other terms agreed upon.

Seeking legal advice

Upon receiving a settlement agreement, you must seek independent legal advice before signing it for the agreement to be binding. This advice will ensure that you fully understand the terms and implications of the agreement, protecting your rights and interests. Obviously, we recommend that you use Laboro Lawyers.

Understanding the terms

The settlement agreement should clearly outline the terms being offered to you. These may include:

• Financial Compensation: details of the financial settlement, which may consist of redundancy pay, compensation for loss of employment, outstanding wages, or other relevant payments.
• Confidentiality: any confidentiality clauses that prevent you from disclosing the agreement's terms and the circumstances leading to it.
• Non-Disparagement: clauses that prevent both you and your employer from making negative or harmful statements about each other.
• Return of Company Property: any requirements for returning company assets or data.
• Reference: that your employer will provide for future employment.

Negotiating the terms

In some cases, settlement agreements are negotiable. If you are not entirely satisfied with the terms, it's essential to engage in constructive negotiations with your employer or their representatives. As employment lawyers, we can be invaluable during this process, helping you secure more favourable terms if possible.

Signing the agreement

If you are content with the terms and have sought legal advice, you can proceed to sign the settlement agreement. By doing so, you waive your right to bring any legal claims against your employer as outlined in the agreement.

After signing the agreement

After the settlement agreement is signed, the terms will become legally binding.