Settlement Agreements
We regularly advise individuals on the terms of their settlement agreement. A settlement agreement can provide a clean break for both an employee and their employer. It can offer a quick alternative to the time and cost associated with following a dismissal process.
If you have been given a settlement agreement by your employer, it’s important that you fully understand its terms and get the fair deal you deserve. Our employment law experts based in Southampton and Winchester can help you understand your rights and what all the clauses in the agreement mean and how they will impact you. We can also negotiate on your behalf to increase your compensation payment and make sure you are fully protected in the agreement.
What is a settlement agreement?
Signing a settlement agreement essentially means you waive or settle all possible claims against your employer, usually in return for a payment. The agreement will include details of any payments to be made, the claims that are being waived, and other clauses such as a confidentiality clause. The agreement is also likely to include a contribution by your employer towards the cost of your legal fees.
Terms that are negotiated through a settlement agreement can often represent a better outcome compared to what you may achieve through issuing a case in the employment tribunal. This is partially due to the uncertainty and ‘litigation risk’ of issuing a claim at the tribunal. An agreement can also provide you with control over specific terms, such as a reference or an agreed announcement. These are terms that can be extremely valuable to an employee.
In addition, by entering into a settlement agreement, you can avoid the financial and emotional burden of issuing a claim at an employment tribunal.
Do you have to sign your agreement and how long will it take to conclude?
Settlement agreements are completely voluntary and both you and your employer need to agree to the terms. You must carefully read your agreement, and it can only become a legally binding waiver of claims once you have taken independent legal advice on the terms of the proposed agreement and the effect it has on your ability to pursue any claims.
Generally speaking, settlement agreements can be concluded relatively quickly. If you are happy with the terms of the proposed agreement, we should be able to finalise the agreement within a few days. In some cases, it can be concluded on the same day. However if there are further negotiations needed on the financial package or terms of the agreement then this means that the process will take longer.
Getting a fair deal
We can help you understand any potential legal claims you may have against your employer and the merits of those claims. For example, this may involve considering if you could have an unfair dismissal claim or any discrimination claim. We can then advise you on the amount of compensation you could expect to receive if you brought such a claim in the employment tribunal. This will help you to establish whether you are being offered a fair settlement package or if you would like to negotiate an increase in your compensation.
Costs
Our Settlement Agreements team is made up of 2 solicitors, 3 associates and 3 partners. It is normal for an employer to make a contribution towards your legal fees as a term of the settlement agreement. Wherever possible, we will work within this contribution. If our fees are likely to exceed the contribution being paid by your employer then we will discuss this with you, and wherever possible, agree a budget with you.
In-House Counsel
Our team of experienced lawyers is well-equipped to support you in various ways. Whether you require advice on a specific issue, additional resources due to capacity constraints, or a second opinion, we are here to help. Explore our legal counsel page for more information and details on our schedule of seminars, specifically designed for in-house counsel.
How we work with you
Whilst based in the South of England, Paris Smith acts for businesses and families throughout the UK. Technology has enabled us to provide a high level of service to our clients whether they are local to our offices or not. Our advice can be given in many ways:
- Over the telephone
- Via video conferencing
- In face to face meetings
In our early conversations with you, We will talk through how you would like to be contacted and the best ways for us to meet with you.