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What Is A Settlement Agreement?Posted on by Daxa Patel
A Settlement Agreement (previously referred to as Compromise Agreement) is a way whereby an employer and employee can part company on agreed terms. By signing a Settlement Agreement an employee gives up their right to bring any claims against the employer. An employee will receive a financial payment for agreeing to a Settlement Agreement. An employer or employee can suggest a Settlement Agreement.
What does a ‘without prejudice’ and ‘protected conversation under Section 111A’ conversation mean?
- In layman’s terms – a discussion that cannot be used in court as evidence in legal proceedings.
- Cannot be referred to in an unfair dismissal claim even where there was no dispute.
- Can provide a quick resolution to a situation and where the employment relationship is not working
- Avoid stress for both parties
- Usually provides an element of financial gain for the employee
- An increased financial sum for the employer
- Employee may not agree to an Settlement Agreement
- Damage to employee relations within the wider company if used inappropriately.
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