Settlement agreement independent legal advice can make all the difference between a Good setttlement and a Great settlement.
A settlement agreement means an employee waiving their right to legal action against an employer in exchange for a settlement, which usually involves a financial settlement.
If you’ve been offered a settlement agreement, or if your employer is considering offering you a settlement, then it’s important to seek independent legal advice.
In fact, it might just be the smartest decision you could make…
Legal Advice Settlement Agreement
There is an array of independent legal experts who can help you with employment issues.
It might be an employment solicitor, a union representative or even the citizen’s advice bureau – the most important thing is that you seek independent legal advice. A solicitor is the only one is qualified to provide this for you. The good news is, before you worry, that in nearly every case YOUR EMPLOYER will pay your solicitor’s bill.
If your settlement agreement is in relation to redundancy, then you should note that your employer MUST go through a fair redundancy process before they take any action.
- Applying fair selection criteria
- Consulting with employees
- Explaining the reasons for redundancy
- Exploring any possible alternative options
- Offering suitable roles within the company if they’re available
- Giving employees the opportunity to appeal the decision
To qualify for statutory redundancy pay, an employee must have been in continuous employment with the company for at least 2 years.
But a settlement agreement is often appealing to both employers and employees.
Whilst the termination of employment is that it’s a situation nobody particularly wants to be involved in, any way in which the risk can be mitigated and the situation can be resolved amicably is preferable for both parties.
When you’re trying to come to an arrangement around the end of your employment (which is due to circumstances out of your control), it’s important that you get a package you’re happy with, whether that’s financially or otherwise.
For example, knowing that the first £30,000 of any settlement agreement is tax-free is important for informing your decision.
That figure includes:
- Termination payments (financial settlement)
- Any remaining salary
- Any other outstanding payments, including notice pay, holiday pay, and bonuses
Employers will often look to include certain things in a settlement agreement, and it’s worth being aware of what you are looking to achieve from the negotiation before you begin.
Things that may be included are:
- A termination payment.
- The outstanding ‘balance’ of any salary, notice pay, holiday pay, bonuses, commission, and any other figures.
- A confidentiality clause (aka non-disclosure clause).
- An agreement for the employee to waive their right to bring legal action.
- A contribution towards the employee’s legal fees.
- A signature by a solicitor, union official, or Citizens Advice Bureau advocate.
- An agreement to provide a ‘good’ reference (the employee may request this).
- A ‘non-derogatory clause’ where both the employee and employer agree not to say anything negative about each other.
Any settlement agreement should outline EVERYTHING that has been agreed upon – money, clauses, termination, payments, and the waiving of legal rights.
Having someone on your side who is a legal expert can be invaluable, especially when it comes to knowing what your employer is looking for, where it’s best to settle, and what a fair agreement would be.
Settlement Agreement Solicitors Near Me
Settlement agreements can be complicated and dealing with the end of your employment can also be a difficult time…
Which is why having a settlement agreement solicitor acting on your behalf can be crucial to achieving a positive outcome from your perspective.
And at Solicitors Near Me, we’re here to help.
We connect you with employment solicitors near you for FREE so you can get legal advice and resolve your redundancy situation.
There’s no obligation to proceed with the solicitor that we connect you with, and there’s no cost until you make a decision, either…
Find An Employment Solicitor Now