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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

4.67 Average

66 Reviews

Anonymous

As with All solicitors advice without consequence but understood and communicated my legal position

Posted 1 week ago

Anonymous

Prompt, professional and excellent service.

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Dominic C

Excellent service, prompt and helpful

Posted 2 weeks ago

Anonymous

I found Redman’s to be very efficient and got me the best deal available in the short time scale that was available.

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Victor L

Very professional. Provided excellent advice on my Settlement agreement.

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Anonymous

Professional from start to finish.

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Oliver W

Excellent service provided by Redmans, will certainly consider using again.

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Melanie H

Very professional and extremely personable service. Thank you very much.

Posted 4 weeks ago

Anonymous

I found Chris to be very approachable and easy to speak with about complex matters. He took action quickly and his updates to me, as his client, were prompt. I would recommend Chris and the team at Redmans without hesitation.

Posted 4 weeks ago

Anonymous

Good advice

Posted 4 weeks ago

Anonymous

Overall happy with the service provided by Chris and Rana.

Posted 4 weeks ago

Anonymous

Chris and Rana provide a great service, very informed, diligent and care about your result, would recommend Redmans

Posted 4 weeks ago

David W

A speedy efficient friendly service, I would definitely recommend Redmans Solicitors for processing Settlement Agreements.

Posted 4 weeks ago

Anonymous

Both Rana and Chris were fantastic. From the first phone call I was confident my matter was in good hands. I was not disappointed. I would highly recommend Redmans. Thank you again for all of your support and advice.

Posted 1 month ago

Federico S

Great advices and communication. Through Redmana I obtained match more than what I thought. Highly recommended

Posted 1 month ago

Tom G

A good and efficient service with the required legal advice provided for a settlement agreement.

Posted 1 month ago

Francis T

The solicitor I used was Chris Hadrill, who I found extremely professional and I felt that he made me feel at ease, considering the subject matter he was assisting me with.

Posted 1 month ago

Anonymous

Chris provided excellent assistance with the negotiation of my settlement agreement. From start to finish, I was consitently updated and advised on the best course of action to take. I would highly recommend Chris and Redmans Solicitors.

Posted 1 month ago

Anonymous

They are busy people but manage well so generally I would recommend them.

Posted 1 month ago

Anonymous

Very efficient and professional service from my first phone call making an enquiry. Timescales of the matter in hand were met and within the agreed budget. Would highly recommend Redmans

Posted 1 month ago

Lisa B

Really very good service, always available to answer questions, provide my with any information I needed to make informed decisions.

Posted 1 month ago