If you have been offered a Settlement Agreement by your employer, it can be a confusing and stressful time. A Settlement Agreement is an important document which you must take legal advice on. Please read on for more information on what you should do if you are offered a Settlement Agreement.
What is a Settlement Agreement?
A Settlement Agreement is a legally binding contract between you and your employer. A Settlement Agreement must be in writing and, importantly, you must enter it voluntarily. This means you cannot be forced or made to sign the Settlement Agreement.
A Settlement Agreement will (usually) do the following things:
- It will bring your employment to an end.
- It will set out certain financial and non-financial incentives you will receive from your employer upon your employment ending.
- It will confirm that once you have signed the Settlement Agreement you are prohibited from bringing various employment law claims and actions against your Employer.
- It may set out further restrictions that your employer expects you to comply with once your employment had ended (e.g., confidentiality).
Why Have I Been Offered a Settlement Agreement?
Usually, a Settlement Agreement will be offered when it is considered that the working relationship between you and your employer should come to an end.
This can either be because a redundancy scenario has arisen, or it may be used as tool to resolve a workplace issue or problem. For example, if you are going through (or are likely to go through) a disciplinary, grievance or capability procedure, a Settlement Agreement may be offered as an alternative to you going through disciplinary action or a performance review.
Can I Ask My Employer for a Settlement Agreement?
Yes.
If you think it is appropriate, you can approach your employer and start a discussion about a Settlement Agreement. However, it is very important that you initiate this discussion properly and in the correct manner.
If you intend to approach your employer to discuss your employment coming to an end by way of Settlement Agreement, you will need to clearly identify that you wish to have a Protected Conversation. For more information on a Protected Conversation, please see our blog: https://lincslaw.co.uk/blog/protected-conversations-with-your-employer-prepare-prepare-prepare/
What Do I Need To Do Once I Receive a Settlement Agreement?
Once you have received the draft Settlement Agreement, you need to make an appointment with a solicitor to go through the Settlement Agreement in full.
It is important that you take independent legal advice before signing a Settlement Agreement, as under the terms of the Settlement Agreement you will be relinquishing important employment law rights you are entitled to. You may also be agreeing to new obligations and making new promises to your employer. It is therefore important that you fully understand what you are agreeing to.
A Settlement Agreement will only be valid if it has been signed by a solicitor to confirm they have given legal advice to you.
How Can Lincs Law Employment Solicitors Help Me?
Our specialist employment solicitors are experts in dealing with Settlement Agreements and would be happy to assist you.
We provide fixed fee advice for Settlement Agreements. The Settlement Agreement Fixed Fee includes your choice of a telephone, video or face to face appointment of unlimited duration where your Employment Solicitor will:-
- discuss the circumstances of your situation;
- advise you in respect of your Settlement Agreement;
- draw to your attention any potential Employment Tribunal claims being settled; and,
- in the event you choose not to sign the Settlement Agreement, provide an estimate of fees for any additional work. This will include a discussion of possible funding options.
- alternatively, if you do decide to sign the Settlement Agreement, arrange for the return of your signed document to your employer; and,
- confirm their advice in full and in writing so you have a comprehensive record of your discussions
If you would like further help and advice in respect of Settlement Agreement, please call us on 01522 440512 for a free, no obligation, initial phone enquiry. For more information, please visit our website at https://lincslaw.co.uk/services/settlement-agreement/
Jasmine Stewart
Specialist Employment Solicitor
Lincs Law Employment Solicitors
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