London Law

Why London Law Is Very Strict In Settlement Agreements

Business Services

If you live or work in London, it is important to know that the law is very strict about settlement agreements. A settlement agreement is a legally binding document that is prepared by an employer for an employee to sign, accepting a certain amount of money. When the employee signs it and accepts the money, he/she can never sue the employer in case of situations like unfair dismissal, sudden termination of their employment and any other thing an employer might do. When an employee is given a settlement agreement, a lawyer must be present to advice him/her about the terms of the agreement. The laws in this area are strict because of several reasons that include;

Settlement-AgreementsThey help resolve disputes and are as formal as court orders. When an employer and employee agree to settle matters out of court by using a settlement agreement, this agreement is recognized by the court as an official document. Therefore, the London law is strict about the settlement agreements because they represent the law out of court when a dispute occurs.

Settlement lawyers ensure that an employee can never sue their employer no matter what. The UK law is strict because it seeks to ensure that an employer does not take advantage of an employee when offering the agreement. The law demands that there be a lawyer to represent the employee and ensure that what they get is fair.  The law demands that if an employee cannot afford to hire a lawyer, the employer should pay the lawyer to represent the employee.

London settlement law is also very strict about an employee engaging a lawyer because when faced with a choice of a settlement agreement, you as an employer would like to have a draft that guarantees that no further claims will be applied for after you pay the agreed sum of money. On the other hand, the employees involved want to ensure that the settlement agreement is followed and fulfilled, and what was agreed upon is fully paid as was agreed in the settlement document. Settlement agreement lawyers whether employment, divorce, debt, or any other type of settlement, help in drafting an agreement that will ensure that all areas are covered. The solicitors make sure that there are no loopholes that an employee can use in future to bring a claim to the employment tribunal. They also make sure that an employee gets what he/she deserves.

It is important to understand that settlement advisers in London are strictly followed according to the type of agreement in question. As an employee or employer, you should understand what settlement agreements are and adhere to them once signed because it is the same as a formal contract and if you breach it you can get into trouble with the law.


Understand that once the settlement agreement is signed, none of the parties can file a case against the other in the employment tribunal for any reason whatsoever.

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