These documents, until recently known as Compromise Agreements, can be a useful way of recording the facts surrounding the termination of an employment relationship.
A form of contract, these provide an employer the certainty of knowing that the employee is agreeing to settle a range of potential claims against it (without any admission of liability), and the employee can expect an agreed reference or perhaps an ex-gratia payment or loyalty payment in return.
There are a number of tax issues that must be considered and a Settlement Agreement cannot be validly executed unless the employee signing it has taken the requisite legal advice.
DECIDING TO ACCEPT A SETTLEMENT AGREEMENT IS LESS DAUNTING WITH TAYLOR ROSE TTKW
We can provide this service and our costs in doing so are always met by the employer.
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