This is an agreement reached between the Employee and Employer which can be used to resolve an ongoing workplace dispute or to terminate the Employment Contract on agreed terms.
As it is a requirement that the Employee obtains legal advice as to the terms and effect of the Agreement, it is usual practice for there to be a term of the Agreement stipulating that the Employer is to pay a contribution towards the Employee’s legal fees, which can range from £350 plus VAT charged at 20% upwards, depending upon the complexity of the Agreement.