Settlement Agreement Solicitors Near Me can help with resolving the terms of ending your employment with your employer.
Settlement agreements are usually part of a process that’s been particularly stressful for all involved, which means it can feel like the weight of the world is on your shoulders.
That’s why understanding what a settlement agreement is, what your options are, and how to proceed is incredibly important.
At Solicitors Near Me, we’re here to help you achieve a positive outcome, so you move forwards and take your next steps.
What Is A Settlement Agreement?
A settlement agreement is where an employee waives their right to legal action after leaving their employment in exchange for a settlement payment or agreement (payment is often part of a settlement agreement).
It’s used in redundancy arrangements and every settlement agreement is different.
Because of individual circumstances, differences in salary, the potential for an unfair dismissal claim and other extenuating circumstances, each case is unique.
But it’s also worth knowing that employees CAN request a settlement agreement.
The suggestion usually comes from the employer, but there’s nothing to say that employees can’t ask their employer to begin a protected discussion about a potential settlement agreement.
This could be particularly useful if you’re aware of a restructuring of the business or if a department is shutting down and redundancies are possible in the future.
If you find yourself in a position where redundancy is a possibility, you should be aware that your employer MUST follow a fair redundancy procedure in order to avoid unfair dismissal or legal action in the future.
This means applying fair selection criteria, consulting with employees, explaining the reasons for redundancy, exploring alternative options, and allowing employees the opportunity to appeal the decision.
Can I Negotiate A Settlement Agreement?
The best thing to do in this situation is to seek expert legal advice from an employment solicitor to ensure that you get the best possible support from the very beginning.
A settlement agreement must include everything relevant to the situation, such as:
- A termination payment – this is financial compensation for the end of the employee’s time in your employment
- Any remaining salary, notice pay, holiday pay, bonuses, commission, and any other figures as a payment
- A written agreement for the employee to waive their right to bring legal action at a later date via employment tribunal or otherwise
- A signature by a solicitor, union official, or Citizens Advice Bureau advocate
- A non-disclosure clause
- A ‘non-derogatory clause’ where both the employee and employer agree not to say anything negative about each other
It might be that there are additional clauses, payments, terms, and agreements included, but this is all a part of the negotiation process.
The most important thing to remember when you’re negotiating a settlement agreement is that you’re probably not going to get everything you want…
Because the employer has certain goals in their mind that they want to achieve, and any employee is going to want certainty on their situation moving forward and have certain things they want from the agreement.
When you’re negotiating, you’ll also need to be aware of the tax rules on compensation and termination payments. For example, the first £30,000 of any termination payment (not including notice pay or pay in lieu of notice) is tax-free, but anything over and above that figure will be subject to tax rules.
The rules cover statutory redundancy pay, additional severance or enhanced redundancy pay, and non-financial benefits such as company cars, tech, and any other property you keep.
Settlement Agreement Solicitors Near Me
Settlement agreements are a tricky business, and negotiating them can be difficult, especially if you’re unsure of what your rights are, what a good offer constitutes, and what you’re entitled to.
But the good news is that if you need any help with negotiating a settlement agreement, or just the process in general, we’re here to help.
At Solicitors Near Me, we have expert employment solicitors we can connect you with for FREE.
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