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EMPLOYMENT: Settlement Agreements

Until recently these were known as Compromise Agreements.

If an employer agrees to make payments and give other benefits in exchange for the employee waiving rights to make claims against the employer (typically as part of a dismissal process), then the Settlement Agreement is the first port of call.

The reason for this is that it is generally not possible to enforce an agreement made between employer and employee under which the employee waives rights unless the agreement is made in accordance with various statutory requirements.

The principal requirement is that the employee receives independent advice.

We advise both employers and employees on the drafting and negotiation of settlements. 

Please see our Employment Blog for more in depth guidance about Settlement Agreements.