What if either party breaches the Settlement Agreement?

If the employee breaches

Depending on the drafting, the employee may have to repay all of the sums in the agreement, part of them or none of them. For example, the agreement may provide for repayment only in the event that the employee breaches a ‘material’ term. Employees may only have to repay the ex gratia payment(s).

If the employer breaches

If negotiations are not successful following a breach by the employer, then the employee will have to bring a breach of contract claim against the employer. Or (if the time limits allow) they could seek to file a claim against the employer at the Employment Tribunal and/or reinstate a claim settled under the (breached) settlement agreement.