Terms that are negotiated through settlement agreements can often represent a better financial outcome from that which the employee may achieve through issuing a case an employment tribunal. This is partially due to the uncertainty and ‘litigation risk’ of issuing a claim at a tribunal. However, it can also provide the employee with control over specific terms, such as a reference or an agreed announcement. These are terms that can be extremely valuable to an employee.
In addition, by entering into a settlement agreement, the employee can avoid the financial and emotional burden of proceeding to issue a claim at an employment tribunal.