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Understanding Settlement Agreements From Your Employer

DJP Solicitors

When an employer wants to break a contract with you, they may offer a settlement agreement. This creates the opportunity for a mutual agreement between both parties while ensuring one cannot take legal action against the other following termination.


Before you sign a settlement agreement, it’s important to know your options and rights fully. Read on to learn about the processes of settlement agreements, as well as how our legal representatives at DJP Solicitors can help obtain the best outcome for you.


The Settlement Agreement

A settlement agreement is one of two ways your employer may try to get you to give up your right to go to the tribunal if you have a complaint against your employer. A settlement agreement will be a contract in writing, which explains what you and your employer will do to settle your dispute, for example, your employer may pay you a sum of money to settle.


An agreed settlement agreement should have the following information on it:

  • Explains the dispute

  • The name of the lawyer who made the document, who should be independent of your employer

  • Explains what the next steps will be


When negotiating, your employer will discuss with you what should be in the agreement. It should be agreed upon by both parties before becoming official, so read on for some things to consider before accepting or rejecting a settlement agreement.


Considering Your Employer’s Offer

There are a few things to consider before making your final decision on whether you would like to accept your employer’s proposed settlement.


Here are some things to think about when debating whether to accept:

  • What else you might do if you don’t accept

  • Is the stress of the tribunal outweighed by potentially winning

  • Whether you want your job back

  • How reasonable their offer is


If you don’t think their offer is reasonable, you can negotiate with them for an increase in what they are offering, or decline their offer entirely and go straight to the tribunal.


To help you decide whether their offer is reasonable, you can always seek advice from your local solicitors. Our team at DJP Solicitors are experts in employment law, should you like to seek our assistance.


What We Do

At DJP Solicitors, we know how important your livelihood is and how frustrating it can be to feel your complaints and concerns are being ignored. Should you want to seek legal advice for support going against your employer or considering their settlement agreement offer, our employment law claims team will be there to support you. We have a range of locations all over Scotland, from Forfar to Peterhead, alongside video and telephone conversations.


Visit our website to learn more about our services and who we are. Alternatively, get in touch with our team today.

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