If you’re reading this post, you’re probably thinking: What should I include in a settlement agreement?
It’s a good question, and it’s one we’re going to answer in good detail – but first, let’s start with the basics.
A settlement agreement is where an employee gives up their right to take legal action against an employer after they leave. Usually, it’s agreed as part of a payment when an employee leaves their role, often as part of a redundancy.
After everything is agreed on the employee’s exit, they will not be able to bring a case to an employment tribunal for unfair, constructive or wrongful dismissal.
It’s an important agreement for a lot of reasons, which is why it’s super important that you include everything to cover yourself AND your employee – to avoid any legal action further down the line.