What you need to know
You’re probably reading this because you have been given a settlement agreement by your employer. So what do you need to know before you decide how to proceed?
We have extensive experience of advising both employers and employees across Yorkshire (and through the UK) on the terms of settlement agreement.
James Austin an Employment Law specialist answers some frequently asked questions to help you understand the process.
Q: Why has my employer given me a settlement agreement?
A: If an employer wants to be able to prevent an employee from bringing a claim relating to their employment or its termination they need the employee to sign a settlement agreement. Signing most other forms of agreement will not prevent the employee from bringing a claim.
Q: Why do I need to see a solicitor?
A: Settlement agreements are only enforceable if the employee has received independent legal advice. This requirement is aimed at ensuring employees understand the impact of signing the agreement.
Q: How much will the solicitor’s advice cost?
A: It is usual for employers to make a contribution to the employee’s legal costs, which in many cases will cover those costs. However, the cost will depend on the length and complexity of the settlement agreement and the circumstances which led to it.
Q: What payments should be included in the settlement agreement?
A: You would normally expect to receive payments for:
- Any outstanding pay to date of termination
- Notice pay
- Any accrued but untaken holiday
There is also usually an additional payment to make it worthwhile for you to sign away your right to bring a claim.
Q: How can I challenge the amount offered in the settlement agreement?
A: Depending on how your employer has approached giving you a settlement agreement, and the surrounding circumstances, it may be possible for you to bring an employment tribunal claim. We can help you understand how much compensation you might receive if you brought a successful claim so you can decide whether you want to accept the sum offered in the settlement agreement.
The above questions and answers are just some of the things that you may need to consider if you’ve received a settlement agreement.
We have an experienced team of specialist employment lawyers who can discuss these and the other issues with you to ensure you understand the agreement and can make an informed decision on whether to accept the terms your employer has offered, or seek to amend them.
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Contact James today so he can start to help you.
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