Settlement agreement FAQs

We have produced many guides about settlement agreements, and here are your most popular questions about them. What are settlement agreements? Settlement agreements (which use to be called compromise agreements) are used to bring employment to an end. They are… Read on

What should I be watching out for in my settlement agreement?

If you have been presented with a settlement agreement, there will usually be an allowance for you to take legal advice about it. Springhouse’s employment law specialists will run through a checklist with you  which looks something like this: The… Read on

COT3 wording – take care

We report on a case where the wording of a COT3 Settlement Agreement did not do the job the employers expected it to. Background In the recent Employment Appeal Tribunal decision of DWP v. Brindley, the Court dealt with an… Read on

Tax treatment of settlement payments

In this case, the Tax Tribunal found that a payment made in a settlement agreement where discrimination was alleged in relation to a redundancy exercise was taxable, subject to the £30,000 exemption. This even though injury to feelings compensation for… Read on

New ACAS code of practice on settlement agreements

ACAS is currently consulting on a new Code of Practice designed to give guidance on discussions around the possible termination of an employee’s employment. There are a wide variety of situations where an employer (or an employee) might suggest that… Read on

Dismissal conversations to be kept from court

Business Secretary, Vince Cable, has just confirmed that legislation will be introduced to enable employers to offer termination packages to employees without fear that this will be used against them in a tribunal claim. This would extend the current without… Read on

What is a compromise agreement?

A Compromise Agreement is the old name for Settlement Agreements. A Compromise Agreement (or Settlement Agreement) is a special type of agreement through which an employee can settle claims against an employer. An employee cannot contract out of their legal… Read on

What is mediation?

Mediation is a process through which parties in dispute work with an independent, neutral third person who works with them to identify the issues and assist them in reaching a resolution. Mediation is a confidential process. It is voluntary, so… Read on