If you’re reading this post, you’re probably thinking: What should be included 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.
What is a settlement agreement?
A settlement agreement is where an employee gives up their right to sue an employer after they leave. Usually they are not leaving voluntarily. A settlement agreement includes the details of the payment the employee will receive when they leave, 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 any reason, including discrimination.
It’s an important agreement for a lot of reasons, which is why it’s super important that you include everything in your settlement agreement to stop your employee suing you after they have left.
