About this service
A Settlement Agreement (previously known as a Compromise Agreement) is a legally binding contract made voluntarily between an employer and an employee, which sets out terms and conditions that are agreed in termination of the employee’s contract of employment.
Once the Settlement Agreement is signed, and on the assumption the terms are fully implemented and any conditions are adhered to, neither party will thereafter be entitled to bring any form of legal action against the other in respect of the employee’s employment or its termination.
Settlement Agreements can be used in a range of circumstances, including situations where there has been no prior dispute between the employer and employee, for example when a redundancy arises.
Whilst the terms of Settlement Agreements are in many cases mutually agreed, it is a legal requirement that employees seek independent legal advice before signing such agreements. It is also common practice for an employer to discharge the legal costs that are incurred by the employee in seeking such advice. At Harvey Copping & Harrison Solicitors, we are able to advise and assist employees in relation to the terms of a proposed Settlement Agreement, and the execution and implementation of the document.