Settlement agreement to end employment

A settlement agreement is used in most cases to end an employee’s employment.


This may be for the reason of the employee’s resignation alternatively for another reason for example redundancy. Due to the fact that this is the end of an employee’s employment they generally receive a contractual notice entitlement under the terms of the settlement agreement. If you have received an agreement consult a solicitor for legal advice.


In some limited cases a settlement agreement is used in a situation where it does not end the employees employment. For example, where an employee has a existing claim during their employment and the employer wants to compromise that claim but continue the individuals employment.


This could be where the individual has a discrimination claim and has suffered losses including injury to feelings arising from the discriminatory act.


In order to compromise that claim and ensure that an individual is properly compensated then an employer will need to enter into a settlement agreement with that individual but the individuals employment with the employer will continue following the completion of that agreement.