The complexities associated with settlement agreement in London.

by Hudson Mckenzie Lawyers and Solicitors who understand you

A Settlement Agreement is basically a legally binding agreement between an employer and an employee. Generally, the employee agrees to a sum of money in return for agreeing to give up his or her rights to pursue or bring future claims against the employer in return for a payment. The Settlement Agreement is legally binding so long as it is signed by you and your employer. You must also receive advice on the terms of the Settlement Agreement and their effect by an independent solicitor or relevant adviser.

It is very necessary that you review the final version of the Settlement Agreement to make sure you are happy with all the terms including the compensation to be paid. Once the Settlement Agreement has been signed, it cannot be changed and you will have no further claim against your employer. Thus, the final version should be read in full.

Restrictive covenants

How is the employer going to manage any restrictive covenants that apply in your contract restricting, for example, your ability to work for a competitor for a period of time following the termination of employment? If there are any such restrictive covenants in the contract of employment you may want to negotiate that they are either withdrawn or that they will be enforced only in particular circumstances.

The employer will typically require you to agree to a clause in the Settlement Agreement that says that you will not “bad mouth” the company. You can ask for something equivalent in return. Some employers are not prepared to agree to such a covenant on their part because they say that a company cannot promise not to “bad mouth” an individual as it does not have sufficient control over all of its employees. One way of dealing with this is to say that the employer will use its best endeavours to ensure that there is no “bad mouthing” or, alternatively, that it will instruct its employees only to talk about you in the terms set out in an agreed reference/reason for leaving. If there are particularly employees you are concerned may “bad mouth” you, you should consider specifying these individuals in the Settlement Agreement,

When it comes to making any claim regarding the future payment, consulting one of the best settlement agreement lawyers London is certainly the best way forward. These lawyers understand each & every aspect of the topic and are the most preferred person to deal with the complexities associated with the settlement agreement.

A major portion of the Settlement Agreement is often the reference. This can be agreed through a Settlement Agreement. It is not within the power of a Tribunal to order one. Most employer will only agree to give a factual reference which states the dates of employment and your job title and will agree that the only communication with prospective future employers will be in the terms set out in the reference.

If you are able to agree with a personal reference through settlement agreement lawyers in London, it is often a good idea for you to write it as a first draft upon which the employer can then build. It may or may not be that you want to put an agreed reason for leaving in the reference.