Settlement Agreements for Employers Edinburgh, Inverness, Aberdeen & Highlands of Scotland

Employment Lawyers Scotland

Settlement agreements are a way to terminate employment and/or bring a workplace dispute to an end in a way that suits all those involved without the risk of an employment tribunal claim being made.

Settlement agreements are most commonly used when an employer and employee are at an impasse and want a clean break from their employment relationship, or when the parties want to bring a workplace dispute to a conclusion.

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Employment Settlement Agreement Lawyers Edinburgh

Settlement agreements, previously known as compromise agreements, are legally binding contracts that allow an employment relationship to come to an end. They are often used to resolve workplace disputes on agreed terms. By entering into the agreement, an employee agrees that they cannot bring any employment claim, such as a claim for unfair dismissal or discrimination, against their employer. In return, the employer will often make a settlement payment to the employee and/or provide a reference.

Settlement agreements can be negotiated and entered into at any point during an employment relationship. They are usually initiated by an employer seeking to resolve an issue with an employee. Once the terms of an agreement have been negotiated between the employer and employee, a written offer detailing what the agreement covers and how the employee will be compensated will be drawn up.

The formal written agreement must satisfy certain legal requirements to be valid:

  • It must be in writing;
  • It must specifically state the claims that an employee will not be able to bring against the employer;
  • It must include a statement that the statutory provisions that regulate the legal validity of settlement agreements have been satisfied; and,
  • The employee must have had independent legal advice about the effect of the agreement and the adviser must be identified in the agreement.

If an agreement is not properly drafted, the employee may still be able to bring a claim and keep the money paid to them under the invalid settlement agreement. Our team of specialist employment lawyers can help by drafting a settlement agreement that is a clear and accurate expression of the parties’ intention and which minimises risk for both parties.

Settlement Agreement Lawyers for Businesses Edinburgh, Inverness, Aberdeen & Highlands of Scotland

Having a properly negotiated and drafted settlement agreement is crucial for employers seeking to protect themselves against any potential claims. It is also vital that employees are appropriately advised about the effect of any settlement agreement they are thinking of entering into.

For clear advice and assistance about Settlement Agreements, contact our expert team at BBM Solicitors by calling us in Edinburgh 0131 526 3280, Wick 01955 604188 or by filling out our enquiry form.