ACAS Settlement Agreement Model: An Overview
When it comes to ending an employment relationship, there are several ways to do so. One of the most common ways is through a Settlement Agreement (formerly known as a Compromise Agreement) – a legally binding contract between an employer and an employee.
In the UK, the Advisory, Conciliation and Arbitration Service (ACAS) has developed a model Settlement Agreement for employers and employees to use. This model agreement is intended to provide a standard framework for negotiating the terms of an agreement and to ensure that both parties understand their rights and obligations.
What is a Settlement Agreement?
A Settlement Agreement is a legally binding agreement between an employer and employee, which sets out the terms under which the employment relationship will be terminated. The agreement will typically include a payment to the employee in exchange for their agreement not to pursue any legal claims against the employer.
A Settlement Agreement can be used to resolve a wide range of employment disputes, including:
– Unfair dismissal
– Redundancy
– Discrimination
– Harassment
– Breach of contract
– Whistleblowing
Why use the ACAS model Settlement Agreement?
The ACAS model Settlement Agreement is intended to provide a standard framework for negotiating the terms of an agreement. It can help to ensure that both parties understand their rights and obligations, and that the agreement is fair and reasonable.
Using the model agreement can also help to speed up the negotiation process, as both parties will have a clear understanding of the terms that are being offered and can focus on any areas of disagreement.
The ACAS model Settlement Agreement includes a number of standard clauses, including:
– The amount of any payment to be made to the employee
– The reason for the termination of employment
– The employee`s obligations, such as confidentiality and return of company property
– The employer`s obligations, such as providing references
– A waiver of any legal claims against the employer
How to use the ACAS model Settlement Agreement
The model Settlement Agreement can be downloaded for free from the ACAS website. It is intended to be used as a guide and can be adapted to suit the specific circumstances of each case.
Before using the model agreement, it is important to seek legal advice to ensure that the terms are fair and reasonable. It is also recommended that both parties are given sufficient time to consider the agreement and seek legal advice before signing.
Conclusion
A Settlement Agreement can be an effective way to end an employment relationship and resolve any disputes that may have arisen. The ACAS model Settlement Agreement provides a standard framework for negotiating the terms of an agreement, helping to ensure that both parties understand their rights and obligations. It is important to seek legal advice before using the model agreement, to ensure that the terms are fair and reasonable.