Settlement Agreements – FAQs

Listed below are some questions we are commonly asked:

Do we have to pay the employee’s legal costs in taking advice on the agreement?

There is no requirement to pay the employee’s legal costs in taking advice on the terms and effect of the settlement agreement, although it is commonplace for a contribution to be paid, because the agreement is only binding if the employee is advised by an independent lawyer. Most settlement agreements place a cap on the contribution to legal fees, and that contribution is only paid if the agreement is signed.

Disclaimer: This information is provided for general guidance only and is not intended to constitute legal advice. You must consult our employment solicitors if you require advice on your situation or circumstances.

I already have a settlement agreement I’ve used before, can’t I just use it again?

Employment law is constantly changing and settlement agreements can very quickly become out of date. We regularly see situations where settlement agreements have been recycled, and because of this do not adequately protect the employer.

It is important to take advice in each individual case to ensure that the agreement is watertight.

Disclaimer: This information is provided for general guidance only and is not intended to constitute legal advice. You must consult with our employment solicitors if you require advice on your situation or circumstances.