Letter—advice to employer client regarding draft settlement agreement

The following Employment precedent provides comprehensive and up to date legal information covering:

  • Letter—advice to employer client regarding draft settlement agreement

Letter—advice to employer client regarding draft settlement agreement

[Note: throughout this letter the employee is referred to as ‘the employee’. You may wish instead to include the employee’s name where appropriate. You may also wish to refer to the employer’s name throughout.]

[Insert name and address of client]

Private and confidential

Dear [Name]

Draft settlement agreement

I enclose a draft settlement agreement[ for [name of employee]] for your review. You will see that[ I have included a number of options for you to consider and] there are some parts in square brackets. Please contact me when you have had an opportunity to review the draft so that we can finalise it. I set out below the matters you need to consider in relation to the various clauses.

    1. 1

      The requirements for, and effect of, a settlement agreement

      A settlement agreement (formerly known as a ‘compromise agreement’) is a legally binding agreement, designed to enable an employer and employee to settle any employment claims which arise under statute (eg a claim for unfair dismissal or unlawful discrimination) or under the contract of employment (eg a claim for notice pay) and it is therefore important that the agreement clearly identifies the legal claims to be settled: you will see that the ‘full and final settlement’ clause (entitled ‘Waiver of claims’ (at clause [insert clause number]) is very detailed for this reason. The requirements for

Popular documents