Q&As

Where a settlement agreement provides for the employer to make a contribution to the employee’s legal costs, payable direct to the employee’s law firm, can the law firm bring proceedings against the employer if it fails to pay?

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Published by a ³ÉÈËÓ°Òô Employment expert
Published on: 29 April 2024
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For information on:

  1. •

    the legal requirements that must be met for a settlement agreement to be binding and valid to settle statutory employment claims, see Practice Note: Settlement agreements in employment—legal requirements

  2. •

    the practical issues that typically arise in relation to a settlement agreement, see Practice Note: Settlement agreements in employment—practical and tax issues

Contribution to legal costs

A settlement agreement will typically provide for the employer to make a contribution to the employee’s legal costs.

For general information on payment of legal fees incurred by an employee in relation to a settlement agreement generally, see the section of Practice Note: Settlement agreements in employment—practical and tax issues entitled ‘Payment for legal advice’.

For a sample clause in the settlement agreement dealing with payment of legal

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