Settlement Agreement Bonuses

Settlement agreements are legally binding documents and have been included in the Employment Rights Act (1996). There are two different questions on the issues mentioned above: whether an employee is legally entitled to get their bonus at the end of their employment relationship and, secondly, whether it is common for employees to receive a bonus as part of their transaction agreement, even if they are not legally entitled to it. Transaction agreements are common in the financial services industry. Many banks and other financial institutions often restructure and reduce the number of employees. The staff concerned may be offered an extended financial package after the departure of the organization, provided that they agree to the signing of a settlement agreement. .