Ending employment - a guide to Settlement Agreements

Ending a period of employment can be a challenging experience at any time, but it can be especially stressful towards the end of the year when financial pressures and personal commitments often increase. Whether it’s simply managing household expenses or planning for the future, redundancy adds a layer of uncertainty that can feel overwhelming.

For many employees, the end of an employment relationship may come with a Settlement Agreement – a legally binding document that sets out the terms between an employer and an employee regarding the termination of employment. Understanding this agreement, and ensuring it serves your best interests, is crucial during such a stressful time.

A Settlement Agreement is a document that resolves any potential claims you might have against your employer in exchange for compensation. This compensation typically includes a redundancy payment, payment for unused holidays, and sometimes additional sums as an incentive to sign the agreement.

Once signed, the agreement prevents you from pursuing any further claims related to your employment (i.e. taking them to an employment tribunal), including unfair dismissal or discrimination. 

Your employer will usually pay for you to get independent legal advice on the agreement. At Ness Gallagher Solicitors, our goal is to:

• Review the terms of your Settlement Agreement
• Assess whether the financial package is fair based on your length of service and the circumstances of your redundancy
  
• Clarify any restrictive covenants (terms that may limit your ability to work in certain sectors or for competitors in the future)
  
• Ensure that your statutory rights and any other benefits are honoured
  

It is more than just a legal document – it’s about your financial security and wellbeing during an uncertain time. The stress of losing a job can affect your family life, relationships, and overall mental health, and changing career in itself can be stressful, therefore it is important that you have an independent lawyer review your Settlement Agreement as soon as possible so you fully understand your rights and options and in order to secure the best possible outcome.

If you’ve been presented with a Settlement Agreement, don’t hesitate to reach out to us. Having the right legal support at a time of such significant change can make a significant difference in how you handle it.