Frequently Asked Questions
A settlement agreement is a legally binding contract between an employer and employee. By signing the settlement agreement you will bring the employment to an end in return for compensation in the form of money or benefits, and your agreement not to bring employment claims in an Employment Tribunal. The agreement must be signed by you, your employer and by us – we take care of the arrangements. You will not receive compensation from your employer out of court unless you sign. The costs of employment litigation are so high most employees sign a settlement agreement on leaving employment. Legal fees in a contested situation could easily outweigh any compensation you may receive. We explain in more detail below.