Q&As

Does a settlement agreement, eg under section 203 of the Employment Rights Act 1996, have to be executed as a deed? When executing documents by a company acting by its officers, do their signatures need to be witnessed?

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Published on LexisPSL on 25/04/2019

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • Does a settlement agreement, eg under section 203 of the Employment Rights Act 1996, have to be executed as a deed? When executing documents by a company acting by its officers, do their signatures need to be witnessed?

Does a settlement agreement, eg under section 203 of the Employment Rights Act 1996, have to be executed as a deed? When executing documents by a company acting by its officers, do their signatures need to be witnessed?

There is no specific requirement, eg under section 203 of the Employment Rights Act 1996 for a settlement agreement to be entered into as a deed. For information on the conditions regulating settlement agreements, see Practice Note: Settlement agreements in employment—legal requirements.

It may be necessary for a settlement agreement to be entered into as a deed, eg:

  1. where it contains a power of attorney

  2. where there are doubts as to the adequacy of the consideration

  3. where the parties want the benefit of a longer limitation period under section 8(1) of the Limitation Act 1980

See Practice Note: Deeds—When a deed is required.

Precedent: Settlement agreement (employment) provides alternative execution options, depending on whether the agreement is to be entered into as a deed or as an agreement.

There are various methods by which documents can be

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