What Is a Severance Agreement? A severance agreement is a legally binding contract between an employer and an employee to terminate an employment contract. It is entered into between the parties to part ways on agreed terms. It is often referred to as a settlement agreement or compromise agreement. In simple terms, by signing a severance agreement, the employer usually agrees to pay the employee a sum of money, and in return, the employee agrees not to take legal action against the employer. Common Uses of Severance Agreements in Dublin Severance agreements in Dublin are often used in redundancy situations. They are also offered by employers to avoid drawn-out and costly performance or disciplinary processes. In circumstances where relations between the parties have broken down, a Severance Agreement provides a clean and mutually agreed exit for both sides. What’s Included in a Typical Settlement Agreement? A Severance Agreement will typically include: Termination payments An ex gratia payment (over and above statutory redundancy) Notice and holiday pay Commissions and bonuses Shares, stock options and other sums In return, the employee waives their right to pursue legal claims, such as unfair dismissal, discrimination, or personal Injury claims. Legal Advice on Severance Agreements in Ireland A properly drafted severance agreement is legally binding. It is important that the employee receives legal advice before signing. A specialist employment solicitor in Dublin can review the agreement, explain the terms and help the employee understand their rights and options. If the employee decides not to sign, the solicitor can also advise on next steps. Key Clauses in a Severance Agreement Some of the most important clauses typically found in severance or compromise agreements in Ireland include: Date of Termination Reason for Termination Financial Compensation Notice Requirements Waiver of Claim Post-Employment Restrictions Confidentiality Non-Disparagement Return of Property Employer Obligations Regarding Legal Fees Employers will often insist that employees obtain legal advice before signing a severance agreement. This also protects the employer, ensuring the employee cannot later claim they didn’t understand the agreement. In many cases, the employer will contribute towards the legal fees typically around €500.00 plus VAT. Need Advice on a Severance Agreement in Dublin? Contact us today for expert legal guidance. Our experienced employment solicitors will ensure you understand your rights and negotiate the best possible outcome.
At Carvill Rickard LLP, we believe that financial worries shouldn’t prevent you from getting the compensation you deserve. Understanding how legal fees work is an important part of deciding whether to move forward with your claim and we’re here to guide you through that process. Can Solicitors in Ireland Offer No Win No Fee Services? Advertising no win, no fee agreements isn’t allowed under the regulations of the Law Society of Ireland and the Legal Services Regulatory Authority. However, during your first consultation, we’ll explain all the funding options available so you can choose the best way to proceed. What Is a No Win No Fee Solicitor’s Agreement? A no win, no fee agreement means your solicitor handles your claim without charging you anything upfront. You only pay your solicitor if you win, whether through a settlement or a court decision and the general rule is that the losing party is liable to pay your legal costs. If you don’t win, you don’t pay your solicitor anything though you may be liable for the legal costs of the winning party. These agreements reduce financial risk and make legal support much more accessible. Speak with a Solicitor Who Can Explain No Win, No Fee Agreements Today If you’re thinking about making a personal injury or medical negligence claim, choosing the right solicitor is an important decision. We’re here to listen, advise and support you. If you're considering a personal injury or medical negligence claim and want to understand your options, get in touch . In contentious business, a solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.
