We provide the complete commercial debt recovery service; from outsourced early arrears collections through to expert litigation, all handled in-house by a multi-award-winning law firm.
We provide the complete commercial debt recovery service; from outsourced early arrears collections through to expert litigation, all handled in-house by a multi-award-winning law firm.
Settlement agreements
All our employment lawyers regularly advise employees on settlement agreements, advising you on the terms and effects of the agreement either by telephone or by face-to-face meeting.
Your employer should pay a contribution towards your settlement agreement legal fees in order for you to receive the relevant advice on the effect of the terms of the settlement agreement.
For an agreed additional fee, we are also able to review whether you have any claims arising out of your situation, can negotiate the sum on offer and can also amend the terms so that it better protects you as an employee, as opposed to the employer.
If you are in full agreeance with the terms of your settlement agreement and it has been correctly drafted, your employer’s contribution should be sufficient to cover the full cost. However, our legal fees for settlement agreement advice start at £500.00 plus VAT, so please check your settlement agreement to ensure that you are covered for at least this amount.
If we feel as though your settlement agreement should be negotiated further to provide a more reasonable financial package or where there are wider implications of your employment ending, we will negotiate with your employer on your behalf to create a settlement agreement that best protects your interests. Wherever possible, we seek any additional costs to be covered by your employer.
Where several of your colleagues have also been offered a settlement agreement, perhaps as part of a redundancy process or company restructure, we can meet with you and your colleagues at your work premises and arrange back-to-back meetings, which provides greater bargaining strength and makes correspondence much more efficient with your employer.
Settlement agreements
We have considerable experience in acting as independent legal advisors to employees in large-scale settlement agreement situations such as large-scale redundancy exercises, re-organisations, TUPE scenarios where contracts have been lost, as well as business mergers and sales.
If you are unable to reach an agreeable settlement agreement with your employer, we have significant experience in finding the most cost-effective solution to resolve issues swiftly, be it through representation in conciliating, mediating, or defending or enforcing your claims in the Employment Tribunal or Civil Courts.
Settlement agreements
A settlement agreement, also known as a compromise agreement, is a legally binding document that outlines the terms of an agreement between an employer and an employee, usually in the context of ending employment or resolving a dispute.
Settlement agreements can be offered for various reasons, including redundancy, restructuring, disputes, or any situation where both parties agree to end the employment relationship under specific terms.
No, you are not obligated to accept a settlement agreement. It’s your choice whether to agree to the terms presented. You should carefully consider the terms and seek legal advice before making a decision.
Yes, you can negotiate the terms of a settlement agreement, including financial compensation, reference clauses, and any other relevant terms. It’s advisable to consult with an employment solicitor to ensure your interests are properly represented.
Compensation is a common component of settlement agreements. The amount depends on various factors, such as your length of service, role, salary, and the circumstances leading to the agreement.
Signing a settlement agreement waives your right to bring certain claims against your employer, but it shouldn’t affect your basic statutory employment rights, such as holiday pay, notice pay, and the right to be paid in line with your contract.
While it’s generally advisable to keep the details of your settlement agreement confidential, you may discuss the existence of the agreement and seek general advice. However, sharing specific terms might breach confidentiality clauses.
Yes, you have the right to obtain independent legal advice before signing a settlement agreement. Your employer usually covers the cost of obtaining legal advice.
Payments up to £30,000 as compensation for loss of employment are usually tax-free. However, amounts exceeding this may be subject to income tax and National Insurance contributions.
If you sign a valid settlement agreement, you typically waive your right to bring certain claims against your employer. Challenging the agreement’s validity would depend on factors such as misrepresentation or undue pressure during the negotiation process.
Yes, you should be given a reasonable amount of time to consider the agreement. The Advisory, Conciliation, and Arbitration Service (ACAS) suggests a minimum of 10 calendar days.
If you decline the settlement agreement, your employment will continue as usual. Your employer cannot use your refusal to sign against you, and you retain your legal rights and protections.
Yes, you have the right to bring a companion, such as a colleague or trade union representative, to settlement agreement discussions to provide support and assistance.
No, your employer cannot force you to sign a settlement agreement. It is your decision whether to agree to the terms. Coercion or undue pressure could invalidate the agreement.
A properly drafted settlement agreement often includes a neutral reference, helping you secure future employment without any negative impact on your reputation.
In most cases, signing a settlement agreement means you waive your right to bring certain claims to an employment tribunal related to the issues covered by the agreement.
If you believe the terms are unfair or unequal, consult with an employment solicitor. They can review the agreement and advise you on whether negotiation or adjustments are possible.
The timeline for finalising a settlement agreement varies based on negotiation complexity and the responsiveness of all parties involved. It typically takes a few weeks to a couple of months.
Yes, settlement agreements commonly include confidentiality clauses preventing you from discussing the terms or circumstances surrounding the agreement.
It’s generally challenging to challenge a settlement agreement once signed unless there’s evidence of significant legal flaws, misrepresentation, or other irregularities.
If redundancy is involved, your settlement agreement should detail the redundancy package and any entitlements you have, ensuring you’re fairly compensated.
Contact Us
For support in reviewing settlement agreements, please contact us on 01332 226 155 or complete the form below.
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