I recently assisted a client recover a significant improvement to the terms of settlement offered by their employer. Read on for more information…
My Client’s Story
My client had enjoyed a very long and successful career with their employer until, completely out of the blue, Gross Misconduct allegations were raised against them. The allegations were very serious and if found proven would have been sufficient to warrant immediate dismissal. At the point my client sought my advice, they were suspended pending conclusion of the employer’s disciplinary investigation.
Amid the investigation, and after my client had provided their account and response to the allegations, they were invited to meet with HR for an informal meeting. My client had assumed this meeting would be to discuss the disciplinary investigation and hoped the outcome would be confirmed as no further action.
Unfortunately, my client was told the employer wanted to speak to them on what is called a “without prejudice” basis. In effect, the employer wanted to have a discussion with my client that would later be inadmissible should court proceedings follow. More information about what the term “without prejudice” means can be found here – https://lincslaw.co.uk/blog/what-does-without-prejudice-mean/
During the without prejudice discussion my client was told that the allegations against them were very serious and could lead to instant dismissal. Rather than risk dismissal (which the employer suggested could well follow) my client was offered a Settlement Agreement. If my client accepted the Settlement Agreement offered, they would leave their employment and receive a compensation payment. However, they would have no right to pursue any employment law claims in the future.
What Is A Settlement Agreement
A Settlement Agreement is a contract. The basic position is that the employer will give the employee certain benefits, this can include unpaid wages (holiday, notice, bonus etc….), an agreed reference, and often a compensation payment. In exchange for these benefits, the employee will give up certain rights, such as their employment, and the ability to pursue employment law claims. More information about settlement agreements can be found here – https://lincslaw.co.uk/services/settlement-agreement/
How I Helped
I spent a great deal of time listening to my client’s account of the disciplinary process to date (the investigation interviews – including the detail of the allegations and their responses to them). I also asked my client to provide me with a timeline leading to the allegations, and asked whether any changes were afoot at the employer in the immediate future. From the information I obtained I felt my client’s position was far stronger than they initially believed. I identified several potential claims that should properly be compensated if my client signed the Settlement Agreement.
Whilst I could make no promises about outcomes, I provided my client with a variety of options for moving forward. One option was to instruct me to negotiate with the employer to try and secure a better financial outcome, and this was the option my client elected.
I then corresponded with the employer, seeking several key changes to the Settlement Agreement, including a five-figure uplift to the compensation payment, along with other benefits. To leverage such a significant increase, I highlighted to the employer each of the potential employment law claims I felt my client could pursue, should the Settlement Agreement not be concluded. This included some less obvious potential claims that were only apparent after I had taken my client’s detailed instructions.
Within a very short period, the employer agreed to most of the changes I had requested, and my client was very happy to sign the updated Settlement Agreement. Given that one of my requests was for an increase in legal fees, the support I provided to my client cost them nothing. They gave me the following lovely feedback –
“Thank you for your assistance in this matter, your efforts and expertise were hugely beneficial”
Lincs Law Employment Solicitors Can Help You
If you require assistance with a Settlement Agreement or workplace dispute please call us on 01522 440512 for a free enquiry and one of our Employment Solicitors will be very happy to help.
Sophie Goodwill
Specialist Employment Solicitor
Lincs Law Employment Solicitors, Lincoln
Tags: employment solicitor Negotiated Settlement Terms settlement agreement unfair dismissal