What is a Settlement Agreement?
A settlement or compromise agreement is an agreement between you and your employer on the the termination of your employment, in return for an enhanced redundancy payment from your employer.
Settlement agreements are used in a range of circumstances. It is likely that you will be asked to sign a settlement or compromise agreement if you are:
- Being made redundant
- Mid disciplinary or performance proceedings and looking to do a deal
- Being offered severance terms
However, settlement agreements are most often used when the employer is making an enhanced redundancy payment in return for a guarantee that no claims will be brought against them.