I receive many enquiries from employees who are experiencing workplace problems and who are offered a Settlement Agreement as a way to resolve those problems and end the employment relationship. As an employee it can be difficult to know whether accepting a settlement is in your best interests and to know whether any financial offer is reasonable. I recently helped a client who was in just this situation. Read on for more information about my client’s story.
What Is A Settlement Agreement?
A settlement agreement is a particular type of contract and one of the few ways in which an employee can both waive and settle their employment rights and claims. Usually, an employer will offer a compensation payment to an employee in exchange for that employee leaving their job, giving up their employment rights and agreeing not to bring any claims against their employer.
There is no prescribed amount that an employer should pay; it will depend upon the individual circumstances. If an employee has existing legal claims or potential legal claims against their employer, the more likely it is that the employer will offer compensation. The amount of compensation tends to be determined by the value of any potential claim. Consideration will be given to the type of claim, the strength of the claim(s) and the financial risk to the employer (on top of any administrative burden and reputational damage) should the employee proceed with their claim(s). From the employee’s perspective, there is no guarantee of a claim succeeding or guarantee about any award that may be made by a court or employment tribunal.
Under a settlement agreement it is also possible to reach an agreement about other matters such as the wording of a reference or an announcement to be made to colleagues about the employee leaving. Generally, an Employment Tribunal is limited to awarding compensation and could not, for example, order the employer to provide a particular reference. There can therefore be benefits to both parties in entering into a settlement agreement.
My Client’s Story
My client suffers with an autoimmune condition with symptoms which include chronic fatigue, memory loss, brain fog, difficulties with language and muscle pain. The condition also makes them prone to infection. In addition, stress exacerbates the symptoms. My client was under significant pressure at work, regularly working double their contracted hours. Their health suffered and they asked their employer to meet to discuss the situation and any adjustments that could be made to support them in their role. No adjustments were made and in fact it was made clear that the employer would prefer if my client simply resigned. Duties were unilaterally removed from my client along with the corresponding pay. My client raised two grievances.
How I Helped
At the point of our initial consultation, my client had gone through one grievance process but their second grievance was outstanding. My client was threatened with a performance management process and presented with a settlement agreement as an alternative option. My client was extremely stressed and anxious and wanted an end to their situation but also felt very aggrieved at the way they had been treated.
After my client had explained everything that had happened to them, I advised that they had potential claims for disability discrimination. Certain elements are necessary for a disability discrimination claim at the Employment Tribunal. Firstly, a claimant would need to show that they meet the definition of disability set out in the Equality Act 2010. Secondly, they need to show that they have been subjected to discriminatory treatment. The Equality Act 2010 sets out various ways in which an employee’s treatment of a disabled person is unlawful. For a more detailed explanation about what disability discrimination is please see https://lincslaw.co.uk/blog/what-is-disability-discrimination-how-can-an-employment-solicitor-help-2/
I was satisfied that my client was a disabled person for the purposes of the Equality Act 2010 and that they had potential claims including a failure to make reasonable adjustments, discrimination arising from disability, harassment related to disability and victimisation. In addition, I considered my client had a claim for breach of contract/unlawful deduction from wages resulting from the removal of some of their duties. Although I had identified claims, I advised my client that it was entirely their decision about how to proceed and that it may be possible to negotiate better financial settlement terms without having to proceed with their claims to an employment tribunal.
My client did not wish to go through any further internal grievance process or be subjected to any disciplinary process. Although in many ways my client wanted to pursue their claims, on balance and for health reasons, they wanted to leave their employment and decided that an agreed exit would be in their best interests. However, they wanted to try and improve the terms of settlement. I was able to negotiate a better overall financial settlement, a more detailed positive reference and an announcement to staff.
What My Client Said
“A seamlessly helpful and caring service
I cannot rate the care and support that I have received from Lincs Law Employment Solicitors highly enough. Everyone I have dealt with, from introduction and admin staff have been extremely helpful. However, my biggest recommendation must go to Kathryn Bolton, my solicitor at Lincs. She has been absolutely brilliant throughout what has been an extremely stressful and challenging legal process with my previous employers. Kathryn is extremely knowledgeable, compassionate, patient, efficient and effective every step of the way, and I cannot fault her service whatsoever. I absolutely recommend anyone who is struggling with employment issues, to seek advice / help with Lincs Law, and in particular, Kathryn Bolton. Thank you all so much.”
Lincs Law Employment Solicitors Can Help You
If you would like advice on your own situation please contact us for a free enquiry on 01522 440512 or via the web chat or contact form on our website at www.lincslaw.co.uk.
Kathryn Bolton
Associate
Specialist Employment Solicitor
Lincs Law Employment Solicitors
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