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Employment Law

Settlement Agreements for Employers in Solihull

A settlement agreement will help to avoid further legal action from a former employee. We help employers to navigate the process of drafting and delivering settlement agreements that protect their business interests.

Bring an end to claims and prevent disputes from progressing to an employment tribunal with carefully-worded settlement agreements. Our employment law team will advise on the best route forward to protect your business.

A settlement agreement (or compromise agreement) will help to prevent legal claims from a former employee. If you do not have the resources to fight a legal claim in an employment tribunal, or if you want to limit your exposure, a well-written settlement agreement can help. Our employment law and dispute resolution teams will work together to help you understand your legal position and plot a clear path forward.

We can help you create a robust and stringent settlement agreement that will allow you to avoid further legal conflict. Settlement agreements are often preferable to the employee as they will receive their payout quickly. Taking a claim to an employment tribunal could take 27 weeks to receive a decision, but a settlement agreement can be reached in a matter of weeks.

Resolve workplace disputes with settlement agreements

Workplace disputes can happen in any company or industry. When disputes progress beyond the point of meditation, an employee may be offered a settlement agreement. The settlement agreement will outline the expectations for both employer and employee. We help employers of all sizes to negotiate fair settlement agreements that will help to protect their business interests and reputation.

If you are facing a dispute with an employee and you believe they may attempt to make a legal claim against you, a settlement agreement can help you to create a clean break. We can help businesses to navigate every step in the settlement agreement procedure. This includes:

  • Reducing the risk of future legal claims

  • Determining restrictive covenants

  • Negotiating the settlement amount

  • Helping employers understand their commitments

For advice and support on settlement agreements for your business, get in touch with Pearcelegal today.

Frequently asked questions

How does a settlement agreement work?

A settlement agreement (or compromise agreement) is a legally binding document between an employer and employee. It will typically offer the employee a severance package in exchange for not pursuing a legal claim in a Tribunal or court. It may also include a non-disclosure clause to prevent the individual from talking about the company.

Can a settlement agreement be voided?

If there is a mistake in the settlement agreement, this could void the contract. The agreement would also be considered void if an employer or employee committed fraud to secure the agreement.

How do you enforce a settlement agreement?

If an employee does not abide by the terms of the settlement agreement, you could be entitled to recover the sum paid to them. If any of the major terms are broken, the employer may be able to recover all or part of the payment due as well as the legal costs of having to take action. We can help advise on the next steps to enforce your settlement agreements.

When should an employer offer a settlement agreement?

It’s common to offer a settlement agreement when you would like to terminate an employment contract with a clean break. The agreement will outline expectations for both parties, so this can eliminate the risk of legal action from the employee after termination.

Our specialists in Settlement Agreements

Nicholas Thomas

Managing Director

Hannah Smith

Assistant Solicitor

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