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redmans-blog-q&aChris Hadrill, a specialist employment solicitor at Redmans, answers the question:

“What are the requirements for a valid settlement agreement?”

For a settlement agreement to be valid, certain conditions have to be complied with:

  1. The agreement must be in writing;
  2. The agreement must relate to a “particular complaint” or “particular proceedings” (for example, reference to an unfair dismissal claim (or other forms of claim) or a particular Employment Tribunal claim number);
  3. The employee who is entering into the settlement agreement must have received legal advice from a relevant independent adviser on the terms and effect of the proposed settlement agreement and the effect of the settlement agreement on the employee’s ability to pursue their rights before an employment tribunal;
  4. The independent adviser who is advising the employee must be covered by a contract of insurance, or professional indemnity insurance, covering the risk of a claim against them by the employee in respect of that advice;
  5. The settlement agreement must identify the relevant independent adviser; and
  6. The settlement agreement must state that the conditions regulating settlement agreements under the relevant statutory provisions (whichever apply in the circumstances) have been satisfied

Further, if the independent adviser is a solicitor then they should hold a current practicing certificate.

If one or more of the above-listed criteria are not met then the settlement agreement will not be statutorily binding and, therefore, not a valid settlement agreement.

When you discuss your settlement agreement with your adviser (whether this is a solicitor, barrister, or otherwise suitably-qualified person) you should ask them the following questions:

  1. What are the “proceedings” that are being settled under the settlement agreement? Sometimes this will be obvious, but your legal adviser should advise you on the potential claims that you have in the circumstances and, therefore, what you are settling
  2. Is your legal adviser independent on the other party or parties to the settlement agreement? This should normally be the case, as your legal adviser should carry out a conflict check prior to agreeing to advise you on your matter, but it’s worth asking anyway
  3. If your legal adviser is a solicitor, what qualifications does he hold, is he an expert in the field of employment law, and what experience does he have with settlement agreements?
  4. What is the effect of the settlement agreement on your ability to bring a claim in the Employment Tribunal or any other courts?
  5. Is your legal adviser covered by a contract of insurance or, specifically, professional indemnity insurance? All solicitors should be covered by a contract of  professional indemnity insurance but it is always worth checking.
  6. Does the settlement agreement state that the conditions regulating settlement agreements under the relevant statutory provisions are satisfied?

Chris Hadrill, a specialist employment solicitor at Redmans Solicitors, commented: “If you want to enter into a settlement agreement to settle your employment tribunal claims then you must ensure that you get appropriate and proper legal advice, otherwise you may find that your settlement agreement is not valid or enforceable.”

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

4.78 Average

143 Reviews

Liz P

An excellent professional service was provided by Chris Hadrill and Mel Chin. Efficient and trustworthy - would highly recommend this company.

Posted 6 days ago

Anonymous

Redmans Solicitors were great. They were able to advice me quickly and efficiently! I would recommend them, as a good solicitors to use.

Posted 6 days ago

Anonymous

Extremely efficient. Mel made a difficult situation bearable and gave good clear guidance thoughout.

Posted 1 week ago

Anonymous

Thanks Chris and Sacha I was reassured throughout the process and a happy outcome

Posted 1 week ago

Edward F

Good and clear employment advice

Posted 1 week ago

Richard O

Chris at Redmans is my go-to legal expert when it comes to employee-related matters. His depth of knowledge, experience and considered approach to problems and their solutions is highly valuable. I cannot recommend Redmans highly enough.

Posted 3 weeks ago

Rory Y

They provide me with timely and clear advice!

Posted 3 weeks ago

Steven C

Redmans handled my settlement with my employer quickly, decisively and to a standard that I was very happy with. I would in similar circumstances contract them again

Posted 3 weeks ago

Deepthi K

Transparent. Clear communication. Prompt reply’s. Saves lot of time. Very satisfied.

Posted 3 weeks ago

Anonymous

Chris and Sacha did a fantastic job and negotiated a significant better settlement agreement

Posted 3 weeks ago

Dino D

I did get a very swift and god service from Redmans

Posted 3 weeks ago

Stephanie H

Clear, prompt, effective support from Chris which has been very much appreciated. Thank you again.

Posted 1 month ago

Anonymous

I would highly recommend Redmans Solicitors, the team were very friendly and my case was dealt with professionally and efficiently. Thank you!

Posted 1 month ago

Shane M

Very professional, welcome advice at a crucial time. Always available and reasonable cost.

Posted 1 month ago

Anonymous

My case was relatively straight-forward. But even so, working with Redmans was easy, quick, professional & clear. Many thanks

Posted 1 month ago

Anonymous

The team were very helpful and answered all my questions regarding my redundancy. Initially I had a call with one of the representatives who escalated my request to a suitable employment solicitor. We arranged a call to discuss the settlement and she helped answer all my questions. We then mainly contacted through email which helped resolve the settlement quickly and convently. Thanks for all the help.

Posted 1 month ago

Djaouida T

You have good communication.

Posted 2 months ago

Anonymous

Fast and professional. A highly recommended company for employment related issues.

Posted 2 months ago

Anonymous

Very professional service.

Posted 2 months ago

Brittany

I was very grateful for Redmans to treat my case with respect and discretion. At the time, I was very new to London and it was meaningful to have someone on my side and win the case for me. Without any doubt, I would definitely recommend Redmans Solicitors to anyone who is in need of it.

Posted 9 months ago

Jake L

Chris is very professional and calm. Very attentive and patient, been a positive experience having Chris represent me, and would recommend him.

Posted 11 months ago