Renaming of compromise agreements to settlement agreements

Settlement agreements are used to settle any dispute when an employment relationship has broken down.

Since the change of name from compromise agreements to settlement agreements came into effect on 29 July 2013, a new guidance was published by ACAS, the employment relations body, earlier this month.

The same rules will apply for settlement agreements. i.e an agreement must be in writing, the employee must have received legal advice. 

The Code of Practice on Settlement Agreements was brought out to help employers and their employees understand the Agreement in advance of it being formally agreed.

The new guidance states that an employee must be given 10 days to consider the proposed agreement before they will be asked to sign it.

The code also provides a list of "improper behaviour" which includes any form of harassment, bullying or intimidation, physical assault or threatening to assault an individual.

If you are considering a Settlement Agreement to resolve a dispute or you have been asked to sign an agreement and need advice, our employment specialists can help.

We can offer advice on all legal aspects of the Agreement including tax paid, general compensation and any terms you are unsure about.

For an initial chat regards a Settlement Agreement please contact us on 0845 603 0708.

National Solicitors

Compromise Agreement Solicitors

Tunbridge Wells