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Telephone: 0131 662 6988
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Telephone: 0131 336 1619

Settlement Agreements Free EnquiriesSettlement Agreements In Scotland

Compromise Agreements Are Being Replaced By Settlement Agreements In Scotland.

Compromise Agreements are soon to be replaced by a new type of agreement known as Settlement Agreements. Both agreements fulfil largely similar roles in the landscape of employment law and offer both an employee and an employer peace of mind when they are being dismissed/dismissing an employee from a job role.

Following the signing of a Compromise or Settlement Agreement you will be unable to venture into an unfair dismissal claim against your ex-employer. Concordantly your ex-employer will be legally protected from having to pay you any form of compensation for unfair dismissal.

Overall then, it is clear that Settlement Agreements are an extremely important piece of paperwork. For this reason it is absolutely vital that you contact a specialist employment lawyer if you are in the throes of drafting an agreement of this type with your employer.

Do not sign a Compromise/Settlement Agreement without having first shown it to a lawyer. You will need to talk to a lawyer to be certain that you are completely aware of your employment rights and to confirm that none of your rights are being compromised in any way.

The aim of a Settlement Agreement is to finalise the termination of a contract with an employer. The agreement will outline all the terms of the contract’s termination with your employer. It will tie up all contractual loose ends and will, in most cases, offer the employer some form of severance payment. In some cases notice periods which were outlined in the original contract may not be being adhered to and this will need to be agreed between the employer and the employee. In monetary terms it will ensure that all aspects of money which could be disputed have been discussed – this will include things such as holiday pay and unpaid salary. It will also discuss items such as bonuses. In terms of potential unfair dismissal claims – common forms of claim such as discrimination against race or gender will be discussed and will be agreed as invalid.

The main reason for the change from Compromise Agreements to Settlement Agreements is one of simplicity. Compromise agreements are currently more long winded than the proposed Settlement Agreements. The idea is to make the fair dismissal of employees a lot simpler for employers. Businesses and employees should benefit from an easier process to make the difficult time of dismissal easier to understand, easier to wrap up and easier to move on from. They are also intended to reduce the need for Employment Tribunals to take place – which can be a expensive and lengthy.

Need An Expert Employment Law Solicitor in Scotland?

Please call us on 0131 662 6988 or 0131 336 1619 or complete our online enquiry form.



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