Corporate law specialists at Fidler & Pepper Solicitors have recorded a sharp rise in the number of settlement agreements it handles.

A settlement agreement is a contract used to end a relationship between an employer and an employee when issues at work are not resolved effectively, if there is a request for compensation, for redundancy and for others reason.

They are not binding under current employment legislation until an employee takes advice on them from an independent adviser, usually an employment law solicitor, who would review the contract and help to make sure that the agreement is fair and legally correct.

Employers will usually offer to pay towards the costs of the independent advice.

Lawyers at Fidler & Pepper, which has offices in Mansfield and Sutton, have seen work in this field increase by more than 25 per cent over the past 12 months.

Russell Jones, who heads up the corporate team, said: “There has certainly been a marked increase in settlement agreements over the past year.

“Companies now want the certainty that settlement agreements achieve, in planning their future work forces or restructuring, or dealing with individual disputes.

“It’s good to see that directors and owners are looking at how their organisations operate and wanting to control costs and outcomes, which is much more sensible than exposing themselves to dispute and litigation.

“For many, business is very different now to how they may have started and the desire to have control over budgets and certainty when restructuring, whether through explosion or contraction, has to be welcomed.

“Settlement agreements are a relatively simple, and time-efficient, way in which the terms of an employee’s departure can be agreed and a way forward can be chosen quickly.”
For more about settlement agreements, visit www.fidler.co.uk or call the firm on 01623 451111.