Settlement Agreements

Settlement Agreements - For Employees

If you have been offered a Settlement Agreement, whether you just need it signed, or you would like advice on whether to accept it, or negotiate the terms, we can help.

What is a Settlement Agreement?

A Settlement Agreement is a document which records any agreement reached between the parties, normally to terminate your employment on agreed terms. Sometimes Settlement Agreements can be entered into whilst you remain employed, for example, to settle a dispute.

In exchange for any payments and / or benefits you are entitled to receive from the employer under the terms of a Settlement Agreement, the employee is required to waive their right to bring claims against the employer, and often other parties, such as directors, officers or employees working within the employer. Once the agreement is signed by both parties it is legally binding. This means that both you and the employer should honour the terms. You could be sued if you breach the terms of the agreement.

The Settlement Agreement should be in writing, and it should refer to the circumstances if the claim. It is a legal requirement that you receive legal advice regarding the terms of any settlement agreement and the effect of signing from an independent advisor (normally a solicitor).

A Settlement Agreement can be offered following a complaint you have raised against your employer, or where an employer has served notice or wishes to serve notice to terminate your employment.

How a Solicitor can help you

Our Employment Law experts can help you with any of the following:

·  Advising on the terms and effect of the Settlement Agreement and getting it signed (if you are happy with the settlement terms).

·  Advising you on getting the best possible settlement, and negotiating with your employer on your behalf, if you wish.

· Representing you in the Employment Tribunal if you do not wish to accept the settlement offer, and / or you have reasonably exhausted settlement negotiations.

You may want to understand whether you are being offered a reasonable settlement payment for signing away your legal rights. The Settlement Agreement may also obligate you to do, or not do, certain things after your employment has ended. It is important that you understand these obligations. We can explain these obligations to you so that you understand exactly what you should or should not do after signing.

Read our post on ‘What is a reasonable settlement payment?’ for more information.

We provide a swift and responsive service, which does not require you to come into the office (although you are welcome to if you wish to).

How much will it cost?

Your employer will normally make a contribution towards your legal fees for obtaining advice on the terms and effect of the Settlement Agreement. Contributions normally range from £350 + VAT upwards depending on the number of payments being made and the seniority of the employee. If you would like to negotiate a higher settlement payment, we can do this for you, and we will also ask your employer to increase its contribution towards your legal fees. In most cases, employers will agree an increase to the legal fees contribution, however, this will depend on the circumstances and the appetite of the employer. For this reason, we cannot guarantee that an increase will be achieved. However, we will advise you on the likely prospect of your employer increasing the legal fees contribution and the settlement payment once we have understood your specific circumstances.

Can I talk to anyone else about my Settlement Agreement

We recommend that you do not discuss the Settlement Agreement with anyone, except your immediate family until you have had advice from a Solicitor. This is because you may inadvertently breach the terms of the Settlement Agreement by doing so. Most Settlement Agreements contain confidentiality clauses. We can advise you on your obligations in respect of confidentiality under the terms of the Settlement Agreement.

We offer a free first 15-minute chat to explain how the process works and how we can help you. Please contact us on 01428 774756.

If you’re not sure whether to call us, check out our client feedback on Review Solicitors.

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Our Employment Team