Once a Settlement Agreement is signed by both parties, it becomes a legally binding document, and withdrawing from the Agreement is then no longer possible. It is, therefore, crucial to carefully consideration the implications of signing the document and seek expert legal advice before doing so.
Drawing Up a Settlement Agreement
After agreeing on a Settlement Offer, both parties’ solicitors will draw the Settlement Agreement up so that both the employer and employee can review it and sign it. There are several legal requirements that must be met before the Agreement can become legally binding. The Agreement must:
- Be in writing.
- Specify and relate to specific proceedings or a particular complaint.
- Meet all applicable statutory conditions.
- Be signed by both parties.
It is also a requirement that the employee must have received professional independent advice, and the individual providing it must be identified within the document. While the individual may be an authorised trade union member or other independent advisor, it is wise to seek legal advice from an expert solicitor who specialises in this area of law.
A Legally Binding Document
If any of the above criteria have not been met, the Settlement Agreement is not yet legally binding and either party is entitled to change their mind. However, once all of these criteria have been met, the Agreement becomes legally binding and cannot then be revoked.
Making Variations to Agreement
Once a Settlement Agreement becomes legally binding, it is still possible to make amendments or variations. In order to do this, however, both parties must agree to the changes and the variation must be put in writing. There is no guarantee that the other party would agree to any change once the document has been signed.
Seeking Expert Advice about Settlement Agreement
As Settlement Agreements are legally binding, it is imperative to seek out specialist legal advice from a qualified solicitor before taking any action. An expert in the field will be able to give their professional guidance as to whether signing the Agreement is in your best interest and help you to make a well-informed decision.
For more information or for expert advice on business or personal legal issues, contact us at www.carterbond.co.uk or call us on 020 3475 6751.
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