Pension issues in employees’ settlement agreements
Produced in partnership with Wyn Derbyshire of gunnercooke LLP
Pension issues in employees’ settlement agreements

The following Pensions practice note produced in partnership with Wyn Derbyshire of gunnercooke LLP provides comprehensive and up to date legal information covering:

  • Pension issues in employees’ settlement agreements
  • Settlement agreements—contracting out of employment rights
  • Settlement agreements—pension options
  • Pension issues—complexity
  • Pension issues—key problems that may arise
  • Defining the nature of the employee’s pension rights
  • Jurisdiction and particular requirements of the pension arrangement
  • Unintended implications of the proposed settlement
  • Whether there is power to undertake a particular course of action in the settlement
  • Transfers out or purchases of annuities for the employee
  • More...

Pension issues in employees’ settlement agreements

This Practice Note looks at pensions-related issues that can arise under settlement agreements within the arena of English law.

Settlement (or compromise) agreements are commonly encountered in an employment law context as a means of agreeing and settling outstanding claims of employees against their employers (and indeed vice versa) in employment termination situations. Such claims may arise from a variety of sources, for example:

  1. statute

  2. the relevant contract(s) of employment, or

  3. areas of common law such as tort (for example, claims alleging negligence)

Claims can arise in respect of any part of the employment process (eg at the initial hiring stage, during the actual period of employment or during the termination process) and can involve complex and expensive issues, particularly where the settlement agreement relates to the employment of senior executives (which is often the case). For further information on settlement agreements, see:

  1. Practice Note: Settlement agreements in employment—legal requirements

  2. Practice Note: Taxation of termination payments—settlement agreements

  3. Precedent: Agreement—settlement agreement

  4. Precedent: Settlement agreement (short form)

Settlement agreements—contracting out of employment rights

Before examining specific pension issues that can arise in relation to the negotiation of settlement agreements, the following points can arise generally in relation to settlement agreements which should be noted.

While contractual claims (and other claims with a common law basis) can generally be settled by simple agreement, difficulties can sometimes arise

Popular documents