At its simplest, a Settlement Agreement (previously known as a Compromise Agreement) is a contract where, in return for money, the employee agrees not to bring employment tribunal proceedings against you. However, Settlement Agreements can also be used to give greater overall business protection. The inclusion of more extensive provisions such as restrictive covenants, protection of confidential information, protection from the employee making derogatory comments about the company, agreed announcements to clients and employees, continued assistance can all leave the company in a much stronger position following an employee exit.
We have experience of acting for both sides of the fence and, in particular, with the exit of senior directors / shareholders. This means we have strong practical experience of complex issues and we understand that the termination of the employment relationship itself is not all we need to consider. We look to take a pragmatic but robust approach here to ensure your goals are met.
Most of the Settlement Agreements referred to us by individuals fail to achieve the intended settlement because they don’t comply with the legal requirements for these contracts. We’ll ensure you don’t fall into that error.