Necessity
Required for employees waiving legal claims against employers in return for a financial settlement, ensuring both parties understand the agreement’s finality.
Implications
The agreement is binding; no further claims can be made against the employer. This affects the employee’s rights to seek any future compensation related to the settled matter, making careful consideration essential.
Procedure
Employers draft the agreement. Solicitors advise employees on terms before signing the legally binding document. The solicitor should ensure the employee’s understanding and voluntary acceptance of the terms, including implications for future employment.
Advice Covers
- Fairness of the compensation amount.
- Restrictions on future employment clauses.
- Legal enforceability and practical implications of the agreement’s terms.
- Potential impact on the employee’s career trajectory and reputation.