Settlement Agreement – When Will I Receive the Payment? (Part 5)

Compensation in settlement agreements is typically paid by the employer at the time the agreement is signed, or shortly thereafter, say 14 days, but it can be longer. There may be a long stop date if the termination date is months away. Settlement agreements usually frame the time for payment by x date or within a certain number of days of the termination date or when it is signed by all the parties including the legal adviser, whichever is later. The payment is usually made in one lump sum and quite often will coincide with payroll day that the employee was usually paid. In any event, the terms of the settlement agreement will specify when the payment will be made.

If you have any questions concerning a settlement agreement, please contact Noel McNicholas on 01926 887700 or noel.mcnicholas@thomasflavell.co.uk.