A settlement agreement is a legally binding document that is signed by the employer and the employee. It is a way to resolve disputes and prevent further legal action. However, there are cases where the employer may breach the settlement agreement. In such cases, the employee has legal options available to them.
A settlement agreement breach occurs when either party fails to comply with the terms of the agreement. In the case of an employer, this could involve failure to pay the agreed settlement amount, failure to provide a reference as agreed, or breaching a confidentiality clause.
If an employer breaches the settlement agreement, the employee can take legal action against them. The employee can apply to the court for breach of contract. The court may order the employer to pay damages or enforce the terms of the agreement.
It is important for the employee to keep evidence of the breach. This could include emails, letters, or recordings of conversations. The employee should also keep a record of any losses they have suffered as a result of the breach.
If an employer breaches the settlement agreement, the employee may also be able to claim unfair dismissal. This would involve showing that the employer`s breach of the agreement amounted to a dismissal. The employee may be entitled to compensation if the claim is successful.
Employers should take care to comply with settlement agreements. Breaching such agreements can lead to legal action and damage to their reputation. Employers should also seek legal advice if they are unsure about the terms of the agreement.
In summary, a settlement agreement breach by an employer can have serious consequences. Employees have legal options available to them if this occurs, including breach of contract claims and unfair dismissal claims. Employers should take care to comply with settlement agreements to avoid legal action and damage to their reputation.