Settlement agreements

You may wish to approach one of your employees with a settlement agreement to resolve a dispute.

A settlement agreement, previously known as a compromise agreement, is a legal contract between an employer and their employee. It is commonly used when problems arise and the employer wants the employee to leave the business and avoid them starting any legal action afterwards.

Our solicitors can help you prepare a settlement contract that will:

• State the terms of departure for the employee
• Normally include a clause whereby the employer will pay a sum of money in consideration for the employee forfeiting legal rights
• Include a clause confirming the maximum legal fees that the employer will contribute towards the employee’s legal costs.

You may be concerned about a wide range of issues such as how to deal with your employee’s future requests for references, confidentiality issues, when they should leave, return of company property, holiday pay and how to retrieve client lists.

We will ensure the contract is worded correctly and complies with employment legislation, so it will be enforceable. Our team regularly assists employers and employees in Thanet, Canterbury and across Kent with settlement agreements and has considerable experience in this area.

Contact us on 01843 234000 for initial advice or to make an appointment.