Settlement Agreements

What is a Settlement Agreement?

A Settlement Agreement is one that is entered into between an employee and employer which typically governs an employee’s exit from the business.   It can also be required in other circumstances.

Once signed, an employee relinquishes certain rights to bring a claim before an employment tribunal their employer. In return, they will typically receive a payment (Termination Payment and/or Payment in Lieu of Notice and/or Statutory or Enhanced Redundancy Pay).

Employees signing a settlement agreement will need to obtain independent legal advice from a qualified lawyer or other independent adviser. It is common practice for the employer to make a legal fee contribution towards this advice.

How Rix & Kay Can Support Your Business:

The Employment Team at Rix & Kay Solicitors can assist you in drafting a Settlement Agreement tailored to your business. We will act efficiently and highly responsibly. Our advice can include revising and drafting, Post-Termination restriction clauses to protect the business. Including advising you on holding meetings prior to the agreement and considering the important  Termination Proposal.  It will also include providing any necessary Tripartite Settlement Agreements & TUPE advice.

Our services:

• Drafting & Advising on Settlement Agreement terms including Confidentiality
• Drafting bespoke clauses including post-termination restrictions to prevent employees from; working for competitors, poaching clients or poaching other employees;
• Negotiate on your behalf in Settlement Negotiations prior to the execution of a final Settlement Agreement.

“Rix & Kay regularly provides operational and strategic employment advice to corporate clients and SMEs, offering support for M&A transactions and advising directors and senior managers on settlement agreements. The firm also operates GatekeeperHR, an HR solution service built to assist a range of business sizes. Elaine Abbs is regarded as very knowledgeable and able to provide information and guidance and is always helpful and supportive”.

“We mainly use the services of Rix & Kay for Employment Law advice. In most circumstances, these situations develop quickly, and decisive action is required almost immediately. The advice provided has been prompt and accurate and has assisted us in diffusing disputes efficiently”.

“Elaine Abbs has been our main point of contact; she developed a training programme for Line Managers and delivered the training in house. This has helped tremendously in diffusing potential difficult situations”.

“Elaine Abbs is very knowledgeable and able to provide information and guidance and is always helpful and supportive. She instils confidence. She responds quickly and has a very approachable and friendly manner as well as professional”.

“Their willingness to help and, even if the enquiry is outside their remit, they will seek advice or point you in the right direction in a constructive and helpful way”.

Industry peers praise Rix & Kay in the latest edition of Legal 500