What Claims Cannot be Settled by a Settlement Agreement?
A settlement agreement is a legal, written contract under which usually an employee agrees not to bring an employment law claim, such as unfair dismissal, wrongful dismissal, or discrimination against the employer. It is important to note that not all claims can be settled by a settlement agreement.
For example, a settlement agreement cannot be used to settle a claim for personal injury or a claim for breach of contract. A settlement agreement also cannot be used to settle a claim for breach of fiduciary duty, which is a duty of loyalty and trust owed by a person in a position of trust to another person.
In addition, a settlement agreement cannot be used to settle a claim for breach of the implied terms of an employment contract. These implied terms are not written down, but are implied by law. Examples of implied terms include the duty of good faith and the duty of mutual trust and confidence.
A settlement agreement also cannot be used to settle a claim for constructive dismissal. Constructive dismissal occurs when an employer makes a fundamental breach of the employment contract, such as a breach of the implied terms of the contract.
Finally, a settlement agreement cannot be used to settle a claim for discrimination. Discrimination claims are protected by the Equality Act 2010 and cannot be settled by a settlement agreement.
It is important to note that a settlement agreement can be used to settle claims for breach of statutory rights, such as the right to be paid the national minimum wage or the right to receive statutory redundancy pay.
In conclusion, it is important to remember that not all claims can be settled by a settlement agreement. It is important to seek legal advice before entering into a settlement agreement to ensure that all claims are covered.
