Settlement Agreements are a type of legal document used to resolve disputes between two parties. An employment settlement in particular is a legally binding agreement between you and your employer which outlines the terms surrounding a change in or termination of your employment.
A Settlement Agreement may be proposed for a number of reasons, including cases of redundancy settlements, disputes between an employer and employee, and situations where an employer claims that an employee isn’t performing at an acceptable level. While employment Settlement Agreements often arise following an amicable discussion between the parties, they can also appear to arise completely out of the blue.
Employment Settlement Agreements are powerful documents that, once signed, essentially restrict your employment rights and entitlements. This is usually in exchange for some kind of financial settlement or other benefits.
It’s important that you fully understand your rights before signing an agreement and the law protects you by requiring that you take independent legal advice in order for the agreement to be binding.
Until the end of July 2013, these agreements were known as “Compromise Agreements” and you may still find yours referred to in this way.
The financial settlement offered must be right for your circumstances. If the terms appear unfavourable, we will negotiate with your employer and fight for a better deal. The important thing is that you get early, clear advice.
Our support goes beyond simply advising you on the legal implications of the Settlement Agreement. We will also work with you to establish whether the financial settlement being offered is fair and reasonable or whether you should seek a higher amount. The team at Harding Evans Solicitors have handled hundreds of these types of negotiations, so you can rest assured that your case will be in good hands.
In many cases, an employer will not make their best or fairest option straight away. We can advise you on the best strategy to negotiate an increased settlement and assist you in achieving the result you deserve.
Equally, if the offer is fair and reasonable, we can proceed with the settlement in an efficient way in order to minimise your legal expenses. Alternatively, if the offer is still deemed unreasonable, we will be able to support you through the process of bringing a claim to an Employment Tribunal.
What does it cost?
If the agreement is straightforward, and the financial terms are agreed, we will normally limit our fees to your employer’s proposed contribution to your legal expenses, typically £350-500 plus VAT depending on the circumstances. If detailed negotiations are required, we will advise you on our likely fees and seek to negotiate an increased contribution to your legal costs.
On occasion, we may advise you that the circumstances of your settlement in fact point towards a more serious issue. Our team of employment law specialists can advise you as to other potential claims you may have and how these may be progressed; to include an estimation of costs, time and potential compensation.
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Harding Evans is a trading name of Harding Evans LLP, a limited liability partnership, registered in England & Wales (registered number: OC311802), authorised and regulated by the Solicitors Regulation Authority (SRA number: 419663).