Settlement Agreements

Settlement Agreements

By Emma Davies

Employment settlement agreements can be used in various scenarios and can be a useful way for employees and employers to part ways on mutual terms, resolve disputes without the need to bring lengthy and costly proceedings before an Employment Tribunal or initiate local investigations/processes. 

Some examples where these can be used include:

  • Redundancy
  • Workplace disputes
  • Performance issues
  • Mutual agreement to part ways
  • Disciplinary actions
  • Long-term sickness
  • Contractual disputes
  • Retirement
  • Restructuring
  • Whistleblowing

In order for a Settlement Agreement to be legally binding, an employee must take independent legal advice from a relevant adviser (solicitor or Chartered Legal Executive), trade union representative or law centre worker. 

This advice covers the terms and effect of the agreement, and importantly, explains how it will affect an employee’s ability to pursue claims before an employment tribunal or other court, apart from a few excluded claims. This understanding is crucial to ensure the employee can make an informed decision on whether to proceed.  In return for the employee waiving their legal right to a claim(s) they will receive compensation, usually financial, and an agreed reference. 

At Everys, our specialist employment lawyers charge an initial fixed fee of £500 + VAT to discuss your employment situation, explain the clauses to you, advise on your legal rights, advise on any potential claims and highlight whether there is merit in requesting an increased offer/amendments to the Settlement Agreement.  We will take the time to ensure we fully understand why an employee has been invited to sign a Settlement Agreement and follow our initial meeting up with full written advice.

An employer will usually cover our fixed fee but if that falls short, we are happy to negotiate on an employee’s behalf.  If we are instructed to enter into extensive negotiations, outside the initial scope of work, we will advise as to costs on an individual basis. 

We are also able to deal with group advice and were recently instructed by 60 employees whose roles were coming to an end due to a business closure.  In that scenario we were able to facilitate a personalised service, working from site to provide group advice on the general clauses, followed up by 1-2-1 meetings for specific advice.  

If you want the best advice, you need lawyers who specialise in employment law.  At Everys you’ll receive a personalised service from your initial enquiry right through to signing (if that’s the correct option for you).

But don’t just take our word for it, here’s what some of our client’s say:

“I just wanted to say thank you very much for all your help and support with my redundancy process. You have explained everything extremely well and been very understanding to the situation. I also want to say thank you to the rest of the Everys team for assisting and helping my colleagues through this difficult time. Your help has been very much appreciated.”

“I just wanted to take a moment to sincerely thank you for all your time and effort, not just on my behalf, but for the support you’ve given to the wider team throughout this process. Your clear explanations and approachable manner made a difficult situation feel far more manageable, and it’s very much appreciated.”

If you’d like a compassionate, yet fierce advocate, please contact us on 01392 477983 or email [email protected] .