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Chris Hadrill, partner in the employment department at Redmans, examines how parties to a settlement agreement may enforce the terms of a settlement agreement if they believe that there has been a breach of the agreement

Broad principles relating to enforcement

Generally, when one party has breached a settlement agreement, the other party may:

  • Seek to enforce its terms.
  • Seek damages by bringing a breach of contract claim.

If you believe that there has been a breach of your settlement agreement you should therefore consider whether you wish to seek to enforce the terms of the agreement, or whether you wish to seek damages against the other party. In respect of both types of action you will have to consider a number of factors, including, in particular, which forum you can bring the relevant claim in.

Employment Tribunal jurisdiction to enforce a settlement agreement

An Employment Tribunal only has legal jurisdiction to consider certain contractual claims which arise out of, or are outstanding at, termination of employment. An Employment Tribunal can therefore only seek to enforce settlement agreements where the settlement agreement has been entered into either prior to the employment terminating or at the same time as the employment terminated.

If the settlement agreement was entered into post-termination then the Employment Tribunal cannot enforce the agreement; a claim for enforcement must be brought in the civil courts.

How to enforce a settlement agreement

Enforcing a settlement agreement will generally involve a consideration of the following:

  1. Has there been a breach of the settlement agreement?
  2. Is it worth litigating to enforce the settlement agreement?
  3. If so, which forum should you bring the claim in?
  4. Issue the claim in the relevant forum

Has there been a breach of the settlement agreement?

If you wish to enforce your settlement agreement then you should first determine what clauses in the settlement agreement the other party has failed to implement, as the first hurdle you will have to clear is being able to persuade the court or tribunal that, on the balance of probabilities, a relevant term of the settlement agreement has been breached.

Is it worth litigating to enforce the settlement agreement?

Once you have determined which clauses have been breached, and which you therefore wish to enforce, you should consider the importance of the breach, and the cost/benefit of further litigation to enforce the agreement.

Which forum should you bring the claim in?

Should you wish to proceed to enforce the settlement agreement then you should consider which forum you wish to try and enforce the agreement in: will it be the Employment Tribunal or civil courts? (see above).

Issue the claim in the relevant forum

Once you have identified which forum to issue the claim in you must then, should you wish to enforce the settlement agreement, bring a claim in the relevant forum.

Top 5 tips for enforcing settlement agreements

  1. Check the settlement agreement and determine whether there has been a breach of the agreement
  2. Check which forum you should bring a claim to enforce the terms of the agreement in
  3. Make a decision as to whether, objectively, it is worth litigating to enforce the settlement agreement or whether your objectives can be met by other means
  4. Obtain legal advice on your situation
  5. Look to issue a claim in the relevant tribunal, if and when necessary

About

Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees Call 020 3397 3603 to speak to one of the members of our employment team or email us on enquiries@redmans.co.uk. Redmans have offices in Richmond, Chiswick, Hammersmith, Fulham, Kingston, Wimbledon, Ealing, Kings Cross and Marylebone (meetings strictly by appointment only).

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Testimonials

4.62 Average

39 Reviews

Katelyn

The solicitor communicated well with me and made sure I understood everything. He did everything needed for my settlement agreement and tried to get the wording changed in my favour too.

Posted 3 days ago

Anonymous

Redmans provided excellent services

Posted 3 days ago

Sibel U

Excellent service

Posted 3 days ago

Peter S

I was very happy with the level of advise I received from Caroline Lewis, and a very professional service fron Chris, The advice given really helped me and I was comfortable to sign the settlement agreement following my redundancy. I would be more than happy to recommend your services to others.

Posted 3 days ago

Derek S

I very much appreciated the help provided by Redmans in the settlement agreement agreed with my former employer.

Posted 4 days ago

Waseem M

It was the first ime I used Redmans Solicitors and to be honest, thety were amazing. Rana Tandon and Chris Hadrill were out of this world. They made the process as simply and smooth as can be. Thank you so much for all your support over the last week.

Posted 2 weeks ago

Anonymous

Worked very quickly considering right deadlines - and gave great advice

Posted 2 weeks ago

Anonymous

Redmans provided me with excellent advice at a very stressful time. The calm, confident and extremely professional manner in which my solicitor handled my case made the issue much easier to deal with and I was very impressed with the level of service I received.

Posted 2 weeks ago

Anonymous

Immediate response to my initial enquiry. Very clear throughout the whole process and thorough and great communication which worked really well during quite a stressful time. Chris Hadrill was extremely helpful and made me feel at ease.

Posted 3 months ago

Nick D

I received a very professional service from Chris. The advice given really helped to leave me comfortable to sign the settlement agreement following my redundancy. Would be happy to recommend your services to others.

Posted 3 months ago

Anonymous

Excellent service from initial contact to deliverables.

Posted 4 months ago

Virginia K

Yes, Chris Hadrill answered all my questions and I feel more confident with my current situation

Posted 4 months ago

Anonymous

Chris Hadrill was referred to me my a friend of mine. I found the service to be efficient, quick and like Chris's direct approach to my work. Well done and thank you Chris!

Posted 4 months ago

Andy W

Very prompt & structured service that helped put my mind at rest at a difficult time

Posted 4 months ago

Anonymous

I have found Redmans to be very helpful, diligant and thoroughly professional when dealing with them, plus they gone that extra mile for me !

Posted 4 months ago

Anonymous

Thank you to Chris Hadrill at Redmans for his assistance in settling my case. I contacted him at the very last minute and he was happy to help me and managed to get everything done on time and in a very professional manner. I will definitely be happy to work with him again .

Posted 4 months ago

Redman's provided excellent legal employment advice for me during a difficult time in my employment. Chris was my lawyer, super efficient, quick, reliable and clearly very experienced in the matter. Could not ask for a better law firm to deal with your query if you are in need of some help. Would definitely use them again in the future. Highly recommending Chris.

Posted 8 months ago

Steven

Chris Hadrill was very professional and responsive. I would highly recommend him

Posted 8 months ago

Dinah

Very Efficient, with very quick email reply’s. I had a matter that needed resolving within a very short space of time and Redmans Solicitors were great with dealing with my matter quickly.

Posted 8 months ago

Ankar

At Redmans the solicitor that was dealing with me was Chris. He dealt with my situation smoothly with clear guidance and explanation

Posted 8 months ago

Anonymous

Clear, concise advice and guidance delivered by an experienced and very capable solicitor, within the timelines required

Posted 9 months ago