For employers, the waiver of claims is often the most important part of a settlement agreement. This clause ensures the employee agrees not to bring legal claims in an employment tribunal about their job or its termination. It gives employers peace of mind, avoiding costly and time-consuming disputes.
For the waiver of future claims to be valid, it must be carefully written. Employers cannot use a general waiver. The agreement must clearly state which claims the employee is giving up. Common claims that employees waive include:
- Wrongful dismissal: When an employee claims their dismissal broke their contract.
- Unfair dismissal: Claims that the dismissal wasn’t fair under employment law.
- Discrimination: Including claims based on race, age, gender or disability.
- Whistle-blowing: Allegations of mistreatment or dismissal after raising workplace concerns.
Adapting the Waiver to Each Employee’s Situation
The settlement agreement must match the specific details of the employee’s case. It should clearly explain the background, including the reasons for termination. This ensures the waiver of future claims is relevant to potential claims from the employee’s employment or its end.
If the circumstances or claims are not properly described, the waiver may not hold up. Employers should also note that some rights, like pension claims or future personal injury claims, cannot be waived.
Settlement Agreement Advice for Employees
Employees need to understand exactly what rights they are giving up. By law, employees must get independent settlement agreement advice before signing. An experienced employment settlement agreement solicitor can check if the agreement offers fair compensation for giving up their rights.
Why Legal Advice is Important
Without proper legal advice, settlement agreements can cause problems for both employers and employees. Employers need to ensure the waiver is valid, and employees must confirm they are fairly compensated for their rights.
If you have questions about settlement agreements, our expert employment settlement agreement solicitors can help. Whether you’re an employer protecting your business or an employee reviewing your rights, we’re here to support you.
With over 10 years of experience in employment law matters, David Philip Harris specialises in providing legal advice on settlement agreements to both employees and employers throughout the UK. David’s opinion and advice are frequently sought after as he contributes often to BBC Radio Berkshire and the People Management Magazine. David Is a long-standing member of The Employment Lawyers Association and The Law Society.