This article gives a brief introduction to settlement agreements, what they are for, how they are formed, and some of the key terms. Reports generally seem to suggest that a considerable number of UK employers plan to make employee redundancies in the coming months. Whether due to COVID, Brexit, or other factors, it seems sensible to assume that this trend might continue into 2021.  It is therefore useful for employers and employees to have an understanding of what a settlement agreement is and when they might be used. What is a settlement agreement for? Settlement agreements (or “compromise agreements” as they used to be known) are binding contracts between employers and employees that allow for a clean break in the employment relationship. On signing a settlement agreement, the employee waives their right to bring a tribunal claim in return for … Continue reading →