What is a Settlement Agreement?
An employer may present an employee with a settlement agreement if they wish to terminate their employment with some conditions. Once signed it is a binding legal contract, therefore, it should be read carefully before signing. They can be issued for many reasons but the most common is when the employer wishes to end the contract of employment usually due to a redundancy situation but sometimes due to a conduct concern.
What should you do with a Settlement Agreement?
The first thing you should do is read it carefully and decide if you agree to the terms. It may be something that you have already discussed with your employer and are happy to sign but as experienced solicitors, we would always advise you to get an employment law solicitor to review it with you.
If there are points you don't agree with or you believe the settlement amount is not enough, then your solicitor can act on your behalf to get an improved settlement agreement.
For some people, this legal document may come as a complete shock and you may not agree with it. In this case, it is likely that you will need the help of a solicitor. You may decide that you want to go through a grievance process rather than accept the settlement. This can be because you want to clear your name or continue in your role at that job.
Please remember, that if your employer has a good case for sacking you and you take them to an Employment Tribunal, you could end up with no settlement if the employer wins the case.
Seek Advice
Please don't worry about being presented with a settlement agreement. The best thing you can do is seek advice. Either go directly to your local employment solicitor or speak to someone at Citizens Advice Scotland.
If you live in Edinburgh, the specialist Employment Solicitors at ELP Arbuthnott McClanachan will be delighted to help you and provide expert legal advice.
