A Settlement Agreement is a legally binding document once it has been signed. However, as long as the document remains unsigned by one or both parties, either party is entitled to cancel or withdraw from the agreement. If the Settlement Agreement has already been signed by both the employer and employee, the option for withdrawal is no longer available. Nevertheless, there are possibilities for variations or amendments as long as both parties agree, and the variation is put in writing.
Careful Consideration is Essential
As it is impossible to withdraw from a Settlement Agreement once it has been signed by both parties, it is crucial not to sign without careful consideration of the implications. Settlement Agreements are voluntary, and there is no requirement to sign one. Therefore, if after consideration, you decide that signing the document is not the correct course of action, you will still retain the option of bringing a claim against the other party.
Taking the Decision Not to Sign a Settlement Agreement
Any decision not to sign a Settlement Agreement must be made on the basis that it would be possible to achieve a better outcome by taking the claim to trial or tribunal. In order to determine whether this applies to your case, you should always take specialist legal advice. An expert lawyer will be able to advise you as to whether rejecting or accepting the offer is the best option for you in your specific circumstances.
Amendments and Variations of Settlement Agreement
It is impossible to withdraw from a Settlement Agreement once it has been signed by both parties. While it is possible to make an amendment or change to the Agreement, both parties must agree to such an alteration. Once the document has been signed, it is unlikely that any change would be agreed by the other party.
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