If one of the parties breaches the terms of the settlement agreement, the procedure will be similar to that of a breach of contract in the civil courts, or as a contract claim in an employment tribunal. Much depends on the actual agreement that is signed by both parties as to what the consequences are for a breach. That is why reading the document is essential before signing it.

If the employer breaches an agreement

If the employer is in breach, then the employee can bring a breach of contract claim against them. They will also have the option of claiming against the employer at a tribunal or taking action to reinstate a claim settled under the breached agreement.

If the employee breaches an agreement

If the employee is in breach, it is likely they will be forced to pay back any money that they received as part of the original agreement. It may state that the employee will not have to repay anything unless they are found to be in breach of a “material” term, in other words, one of the most important terms in the agreement. The employee may only have to repay the ex gratia payments.