Making a Settlement Agreement with your employer

21 January 2022 Employment Law Jane McNicol

A settlement agreement is a type of legal contract that helps to resolve disputes among parties by coming to a mutual agreement on the terms. If you have been affected, or are likely to be affected, by the recent news about OVO, and you expect your employment contract to come to an end, then you may be asked to sign a Settlement Agreement.

OVO Energy, one of Perth's largest employers, is expected to cut a quarter of its staff as it struggles with soaring energy prices and taking on new customers from a rival supplier. The company told staff last week that around 1,700 people would lose their jobs.

A Settlement Agreement is an important legal document which brings said employment to an end or resolves a particular employment dispute. Whether you work in customer service or a managerial role, you require to seek legal advice prior to signing the agreement and it is important hat you do so at the earliest opportunity as the drafting of a Settlement Agreement is key to ensuring both parties agree on the correct terms to resolve the issue and bring matters to a satisfactory conclusion. The Settlement Agreement among other things will include the terms agreed between the Employee and Employer to resolve the dispute or bring their relationship to an end.

A Settlement Agreement often includes the agreement of financial settlement from the employer to the employee as well as obligations which the employee must stick to as part of that agreement and there are strict legal rules which must be followed in order for a Settlement Agreement to be valid.  

Remember that the good news is that if you are an employee, your employer will include a set contribution to the legal fees in the terms of the Settlement Agreement. Often, this fee can cover the full cost of us advising you on the Agreement. Where it does not, we will advise you on any fair and reasonable contributions which you may have to make.   

At Macnabs, we know that what matters most to you is achieving a fair Settlement Agreement and moving on. Our highly experienced Settlement Agreement Lawyers can advise and assist you on all aspects of your agreement.  We tailor make our legal advice specifically for you which means you will achieve a solution that’s fair and puts you first.    

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