Have you been given a settlement agreement to sign? Ensure that you are receiving the best deal possible.
Settlement agreements can be used if you are leaving a business, to end an employment relationship on agreed terms, or to solve a dispute in an ongoing employment relationship. A settlement agreement will usually offer you a lump sum payment and in return, you sign away your rights to ever bring a claim against your employer.
Due to the complex nature of settlement agreements it is important that you instruct someone who will take you through the entire agreement and explain it to you so that you fully understand each clause and are satisfied you are receiving the best deal possible.
What is a settlement agreement?
The basic position is that your right as an employee to pursue a matter in the tribunal cannot be excluded. An exception to this rule is where a formal settlement agreement, fulfilling strict statutory requirements, has been entered into between you and your employer. Settlement agreements can be used if you are leaving a business, to end an employment relationship on agreed terms, or to solve a dispute in an ongoing employment relationship.
A settlement agreement will usually offer an employee a lump sum payment in reflection for them waiving their rights to bring a claim against their former employer.
Why have I been asked to enter into a settlement agreement?
Once a valid settlement agreement has been signed by both parties, you will be unable to make an employment tribunal claim about any type of claim which is listed on the agreement. Your employer may ask you to enter into a settlement agreement because they are concerned that you may have a claim against their business or because they do this as routine when an employer leaves their organisation.
How much would a settlement agreement cost?
The cost of a settlement agreement depends on how complicated the agreement is and how much negotiation is required prior to all parties agreeing to the terms. We will, however, agree rates up front with you so that there are no surprises.
Employers will frequently agree to a contribution to your legal costs at a fixed rate. Therefore if this is not something which has been discussed it may be worth raising with your employer.
How can Moore Blatch assist you?
Due to the complex nature of settlement agreements it is important that you instruct someone who will take you through the entire agreement and explain it to you so that you fully understand each clause. A settlement agreement involves you signing away your rights to ever bring a claim against your employer and therefore it is vital that you meet with someone who can advise accordingly and negotiate on your behalf.
The team at Moore Blatch have a vast range of experience in advising on and negotiating the terms of settlement agreements. Rather than merely signing off on a settlement agreement we will advise you as to whether a good deal is being proposed or whether you should negotiate for a better package. Our expertise and experience range from simple, straight forward agreements to complex, contentious ones meaning that we can advise any employee in relation to their specific set of circumstances. Our in depth knowledge means that we can advise you as to when a deal is fair and when you should negotiate to ensure that you walk away with the best package possible.
For more information please contact Katherine Maxwell or Naomi Greenwood.