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Richard Lozano, Head of Employment at Taylor Bracewell, explains that a Settlement Agreement is a contract between an employee and employer, often arising in cases of employment issues or redundancy. The employer typically presents an offer on a "without prejudice" basis, ensuring confidentiality to protect against future claims if the agreement fails. Employees are advised to seek independent legal counsel to review the agreement's terms, with the employer usually covering the legal fees. A competent advisor will also help assess whether the employer’s offer is reasonable, noting that sometimes employers only offer the minimum entitlements to which the employee is legally entitled.
