What is needed for a settlement agreement to be valid

Before you think about changing your mind, check that you’re dealing with a valid settlement agreement.

If you have a settlement offer that has been agreed upon, solicitors for both sides prepare it for review and signature; certain legal requirements must be met before the agreement is binding and these are:

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

If we’re thinking about employers and employees, the employee must receive independent advice, and the adviser’s details must be included in the agreement.

This adviser can be a trade union representative or another qualified professional, but it is usually best to consult a solicitor with experience in this area.

Is your settlement agreement legally binding?

If any of these requirements are not met, the settlement agreement is not yet binding, and either party can change their mind.

You must be highly aware that once all conditions are satisfied, the agreement is final and cannot be revoked.

Making variations to an agreement with legal guidance

After a settlement agreement is binding, changes can only be made if both parties agree and record the variation in writing; the other party does not have to accept any proposed changes.

Settlement agreements are legally binding; therefore, it is imperative to get advice from a highly competent solicitor before signing.

A solicitor from Orwins can help you understand your options and make an informed decision.