At the end of an employment relationship, it is common for an employer to offer to pay a sum of compensation to an employee in return for which they ask them to sign a settlement agreement (previously known as compromise agreements) under which they waive all their employment rights against the employer.
There are certain formalities to comply with in order to ensure that the agreement is valid, one of which is that you take independent legal advice.
When considering whether you should settle with your employer, it’s all about reaching a resolution of an issue that’s right for you. We’ll analyse the situation for you, identify any potential claims and be able to advise you on the pros and cons of settling.
We will ensure that the terms are tailored to your particular circumstances and, where appropriate, negotiate for better terms to reflect the value of any claims or other requirements which you might have.
As the employer will be asking you to enter into an agreement, it is usual for them to make a contribution to your legal costs. We will advise you of our costs estimate at the start of the matter so that you know exactly where you stand and, if necessary, can seek an additional contribution from your employer.
In some situations, such as large scale voluntary redundancy exercises, employers offer settlement agreements to a number of departing staff. We are experienced in acting as the independent legal adviser to groups of staff in these circumstances, liaising with the employer collectively, whilst ensuring we are always acting in the best interests of each individual employee.
Useful Employment Website Links
Acas Codes of Practice on settlement agreements
Acas Guidance on settlement agreements
Please contact us if you have an employment-related query. We will check whether we can act for you and, if so, we will confirm the terms and conditions of our retainer with you in a client care or engagement letter
Wherever possible, we will provide you with a fee estimate before carrying out any substantive work on a matter. If we provide advice over the telephone, we will not confirm the advice in writing unless specifically requested to do so. If we are required to carry out any follow-up work to a meeting or call, we will provide you with an estimated timescale for the completion of your work, factoring in any urgency
When providing ad hoc advice, we will usually render a bill to you on a monthly basis. Otherwise, we will bill you on completion of a specific item of work
Please contact a member of the employment team.
We can offer advice on any issues relating to Settlement Agreementscontact
Settling Employment Claims.
When considering whether you should settle an employee’s claim or potential claim, it’s all about reaching a solution that’s right for your business. We’ll analyse the situation for you, identify the potential claims and advise you on the pros and cons of the different settlement options.find out more