A Settlement Agreement (previously known as a Compromise Agreement) is a legally binding agreement between an employee and an employer.
The main terms are usually agreed between the employee and employer, normally the employee agrees to settle potential claims in return for a cash payment. However there are many other points that need to be agreed and we can help ensure that all the relevant issues are dealt with, such as provision of references, return of property, agreements about publicity and confidentiality.
There are also specific tax rules surrounding any cash payment on termination of employment, specifically there are provisions allowing some payments on termination to be made free of tax. As with most tax law it is far from simple to determine if payments fall within these rules. Our solicitors are able to assist, ensuring that wherever possible any payments are as tax efficient as they can be.
If you have reached an agreement on termination of employment it is essential that you get help with drafting and negotiating a valid Settlement Agreement to record the key points.
Contact us on 01928 735 333 for an initial no obligation call or click here for a call back.