What are the benefits of a settlement agreement?
A settlement agreement is beneficial to both parties. The employer, on the one hand, avoids lengthy, time-consuming litigation and expense, and the employee, in turn, does not have to face the financial risk involved in pursuing an employment tribunal claim.
The main features of a Settlement Agreement: -
- End date of employment.
- How much notice the employee will be entitled to and how much notice pay they will receive.
- How many holidays they have left and how these will be paid upon termination
- What tax will be due on these payments
- Any bonuses or commissions due
- What will happen to any pension payments
- The return of any company property the employee has in their possession
- A waiver made by the employee stating they will not bring any employment tribunal claims or grievances against their employer once the agreement has been signed