If you’ve been presented with the option of a settlement agreement by your employer, it’s only normal for many stressful questions to go through your head. Are you receiving the best terms you could? What does this mean for future employment? Are you able to tell anybody about the agreement?
Rather than fret, reach out to settlement agreement solicitors for proactive legal advice that puts your best interests first. We work on behalf of individuals to make sure that their employer treats them fairly – often improving their settlement figure far beyond its original offer.
When Might You Need Settlement Agreement Legal Advice?
Workplace settlement agreements are used by companies for a wide range of reasons, but the consistent throughline is that it’s often easier (and cheaper) for a company to offer a settlement agreement than proceed with the usual complex employment processes.
A settlement agreement generally stipulates that, once accepted, the recipient can’t pursue legal action against their employer for any number of reasons. This makes it a clean break for both parties.
Our settlement agreement lawyers will work with you to understand the terms of your settlement, and make sure you’re receiving the best possible compensation for your situation. Some common reasons that employers choose to go down this route include:
- Redundancy: If a business is downsizing or restructuring, they might opt for a settlement agreement alongside (or instead of) the usual redundancy process
- Performance Issues: Employers typically put underperforming employees on a performance improvement plan, or PIP. This can be time-consuming and stressful for both parties, though, so a settlement agreement is often chosen instead
- Long-term Illness: If you’ve been on medical leave for a prolonged period of time, your employer might look to terminate your contract on the grounds of medical capability. This is often handled through a settlement agreement, to agree on mutually favourable terms
- Senior Executive Exits: Leaving a company is rarely seamless, and there’s often more complexity associated with senior leadership roles. Settlement agreements can be used to map out financial terms and post-termination restrictions
These are just some of the examples where you might require settlement agreement legal advice, and our team will initially work to understand your exact needs before mapping out a legal strategy that works best for you.
You’ve Received a Workplace Settlement Agreement – What Next?
If you’ve received a settlement offer from your workplace, the clock has now started on a process that can have a very favourable outcome for you – as long as you act fast.
Once you reach out, our settlement agreement solicitors can walk you through everything you need to know. But as a general overview, here are the five stages that you need to be aware of:
1. Receive an initial offer
The settlement agreement process often begins unexpectedly, at least on behalf of the recipient. Your employer will arrange a meeting with you, typically via an HR representative, and have a “protected conversation” in which the initial terms of your settlement are laid out. This agreement is a draft, and you’re not expected to accept it on the spot.
This is likely the stage that you’re at now, and it’s when a settlement agreement solicitor can help.
2. Instruct your solicitor
A settlement agreement requires you to waive your right to sue your employer, which means that it’s not legally binding until you’ve received external, independent settlement agreement legal advice.
This is when you should reach out to our team. Your employer will often cover some or all of the associated legal costs, which is mentioned in your initial draft offer.
3. Review and consultation
Once you’ve reached out to our settlement agreement lawyers, we’ll review your offer and let you know what it actually means in clear, concise terms. This can include the amount you’ll be paid, what claims you are giving up, legally, and any tricky clauses that may prevent you from doing something down the line (such as working for a competitor).
4. Negotiation
This step isn’t always required, but if you feel that the terms of your settlement agreement are unfair, we’ll negotiate with your employer on your behalf. Some of the elements that can be negotiated include:
- A higher tax-free lump sum
- A longer notice period
- Wording for your job reference
- Relaxed non-compete clauses
5. Signing
Once the terms of your settlement agreement meet your expectations, it’s signed by both parties and becomes legally binding. As your solicitor, we’ll also sign an Adviser’s Certificate, which confirms that you have received independent legal advice.
Why Choose THB Legal?
Receiving expert settlement agreement legal advice can mean the difference between a fair settlement, and being left feeling undervalued.
We’ve helped our clients obtain agreements that meet their needs in a timely manner. They choose to work with our experts because of:
A local, friendly presence
Our offices are based across Essex and Suffolk, and you’re always welcome to pop in for a friendly chat about the specifics of your situation. Alternatively, we can also host remote consultations to ensure that your case is resolved swiftly and amicably.
Fast turnaround
Making the most of a settlement agreement is all about speed. Our settlement agreement solicitors will work on your behalf to obtain a beneficial outcome promptly, without delays or administrative stresses.
Industry recognition
Our experts are consistently recognised in legal directories such as Chambers and Partners and the Legal 500 for providing exemplary service to our clients. We have teams you can trust, and communication that’s transparent and timely.
Speak to our Employment Law Team Today
If you’ve received a settlement agreement or you’re anticipating one from your employer, we’re here to help. Give us a call today on 01245 493959, email us, or fill out our contact form to get started.
