Glasgow Employment Law Blog

Being approached by your employer about a settlement agreement can seem daunting – especially if you are unsure of the process of entering into such an agreement. This guide aims to give an overview of the settlement agreement process to help answer the all important question: what happens now?  

On 29th July 2013 settlement agreements came into force in employment law. These agreements used to be called compromise agreements. A settlement agreement is entered into by an employer and employee and brings to an end the employer-employee relationship. Often such agreements are issued by an employer if there is an ongoing dispute between the parties. In return for completing the agreement the employee receives a financial lump sum but importantly gives up any right to take the employer to an Employment Tribunal or court for any matter covered in the agreement.