Receiving a Settlement Agreement may be expected, but may still cause some stress – you will have lost your job and be faced with having to contact a solicitor. Reading on will allow Howell Jones to take you through the challenges and provide guidance on how our knowledgeable and supportive employment team can advise you.
What Is a Settlement Agreement?
Settlement Agreements are documents that are offered by your employer to confirm the details of your termination. They can be offered to propose the termination or simply confirm the terms if you have already left employment.
Why Do Employers Offer Settlement Agreements to Employees?
The most frequent reason is that an employee is being made redundant and their employer wishes to provide them with an enhanced redundancy payment, i.e. above their statutory entitlement.
Other reasons can include employment ending by mutual agreement due to a potential disagreement. Performance issues can also result in an Agreement, as it is an alternative to somebody being placed on a performance improvement plan (PIP).
Why Would I Accept a Settlement Agreement?
The Agreement usually contains above and beyond your statutory or contractual entitlements. This “ex gratia” payment is provided to compensate you for the loss of employment.
By signing the Agreement, you are waiving your right to bring a variety of claims against your employer, and you need to be suitably compensated for the loss of your rights.
Why Do I Need a Lawyer if I Am Happy With the Settlement?
By signing the Agreement, you will have waived your ability to bring claims for a whole variety of rights. To ensure that your understanding is correct and that the Agreement is a suitable one, you are required to obtain independent legal advice on the terms and effects of the Agreement.
You cannot circumvent this, as it is a requirement of any Settlement Agreement that your legal adviser signs the Advisor’s Certificate contained in the Agreement itself.
Who Pays for the Legal Advice?
Employers usually contribute towards the fees associated with receiving the advice for the Agreement. It is best to clarify the amount before finalising matters, and we can do this on your behalf if necessary.
If there is no contribution or only a limited one, you may have to top up any contribution, but we will provide ample information on if and when this may be required.
What Advice Will Howell Jones Give?
Our dedicated Surrey solicitors at Howell Jones will advise on the entire Agreement, its effect, and the claims you may have against your employer that you will be waiving your right to.
We will advise on the value of the compensation and, if instructed to, help you to negotiate the best package available without harming your interests.
My Employer Has Given Me a Deadline – Can You Still Help?
Don’t panic! Settlement Agreements do generally have quite tight deadlines, and our experienced lawyers are ready and able to meet with you and respond to your employer promptly.
Please note, however, that ACAS guidance states that you should have 10 days from receipt to consider the Agreement, so if you are feeling pressured, we can remind your employer of this.
Howell Jones is a team of expert Employment Solicitors in Surrey. Contact our team today for more advice and information.
