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In this article specialist employment solicitor Chris Hadrill answers the question: “what claims can be settled by a settlement agreement?”

Generally, the main purpose of a settlement agreement is to commit the employee to waive certain claims which may arise from their employment or the termination of their employment. Broadly, the claims that an employee may have as a result of their employment or the termination of their employment are as follows:

  • Statutory claims: for example, claims for unfair dismissal, discrimination, harassment or victimisation (amongst others);
  • Contractual claims: claims for breach of contract/wrongful dismissal;
  • Tortious claims: for example, a claim for personal injury;
  • Pension claims: a claim in respect of the employee’s accrued pension with their employer

Statutory claims

Statutory claims are generally the most common form of claims that an employee may try and assert against their employer – the most common types of claims settled are generally claims for unfair dismissal, constructive dismissal, discrimination, and harassment.

Some statutory claims do not need a specific form of waiver (for example. a claim under the Protection from Harassment Act 1997), but employers normally prefer to obtain a specific form of waiver (via a settlement agreement) in order to obtain certainty that all types of claim are being settled.

Contractual claims

A contractual claim is a claim for breach of a particular contract – this could, for example, be a breach of a contract of employment, a breach of a share scheme, or a breach of share option agreement.

An employee can enter into a valid settlement of any contractual claims (for example, a claim for wrongful dismissal) as long as the employee receives “valuable consideration” for the waiving of their particular contract claim.

 

Personal injury claims

The employer will commonly want the employee to settle any personal injury claims that they are aware of, but the employee will generally be able to bring claims for personal injury that they are not aware of (and could not reasonably be aware of) as of the date the settlement agreement is completed.

Pension claims

It is not possible for an employee to waive any accrued pension rights at their employer save in certain limited circumstances.

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

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Richard v

Excellent Service

Posted 6 days ago

Anonymous

Very happy from service received. Highly recommend

Posted 6 days ago

Colin W

Very professional and thorough. Sachs who dealt with the bulk of my case was excellent Thank you. .

Posted 6 days ago

Anonymous

I was generally impressed with the fast turn around, efficiency, responsiveness, and consideration of circumstances. I needed a couple of areas of advice quickly and with Redmans help was able to get to a conclusion quickly and with minimum stress. They were friendly and professional throughout - I'd use them again.

Posted 1 week ago

Anonymous

The guidance and assistance I recently received when using Redman's was fantastic. Caroline & Chris were both very informative and understanding walking me through each step. Thank you.

Posted 1 month ago

Nicola W

Fantastic service, very quick and efficient. Thank you

Posted 1 month ago

Anonymous

Excellent professional service.

Posted 1 month ago

Anonymous

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

Posted 1 month ago

Anonymous

Prompt, professional and excellent service.

Posted 1 month ago

Dominic C

Excellent service, prompt and helpful

Posted 1 month 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.

Posted 1 month ago

Victor L

Very professional. Provided excellent advice on my Settlement agreement.

Posted 1 month ago

Anonymous

Professional from start to finish.

Posted 1 month ago

Oliver W

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

Posted 1 month ago

Melanie H

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

Posted 2 months 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 2 months ago

Anonymous

Good advice

Posted 2 months ago

Anonymous

Overall happy with the service provided by Chris and Rana.

Posted 2 months ago

Anonymous

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

Posted 2 months ago

David W

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

Posted 2 months 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 2 months ago