What is a Settlement Agreement?
A Settlement Agreement (previously known as a “Compromise Agreement”) is a legally binding agreement following the termination of your employment.
Settlement agreements are often given to employees when they are being made redundant. However, they can also be offered to employees if an employer thinks they are performing badly in their job or are guilty of misconduct. In some cases, an employee will be aware that their boss is unhappy, while for others, being offered a settlement agreement can come as a shock.
Essentially, an employee is given money or severance pay in return for not bringing a claim against their employer. Each settlement agreement will vary but usually the documents will include clauses that deal with: the claims to be settled; the payments you will receive and the relevant tax issues; a confidentially/gagging clause (so you can’t bad mouth your employer) and any agreed reference from your employer. Once signed by both the employer and the employee and certified by an independent solicitor, a settlement agreement becomes legally binding.
How we can help
When you’re pulled into a meeting and asked to leave your job, it can be a shock. Later on, it can be hard to recall exactly what was said. The best advice is therefore to make a note about what happened and what was said as soon as possible. The next thing to do is get some decent advice. An employer will usually pay the legal costs for you to see a solicitor or qualified adviser independent of the employer as it is a legal requirement for the settlement agreement to be contractually binding on the employee.
An employment solicitor can help you consider whether you’re getting a good deal and whether you have any grounds for a claim against your employer – such as discrimination or unfair dismissal. If you’re facing a period of unemployment, you need to be able to meet your household living expenses until you get another job. One of the considerations you need to make is whether the money that is being offered is enough.
You need to consider why you are being offered the agreement and what rights you are being asked to waive as a result of you signing. Armed with this knowledge, you can often save legal costs by negotiating yourself directly with your employer and in our experience, you often end up with a better deal, which may include a bigger payment.
The employer will often insist that the settlement agreement be signed by a particular date, but you are not legally obliged to sign a settlement agreement and if you don’t sign the agreement, then your full employment rights are reserved for you to make a claim against your employer.
To see some typical terms of a settlement agreement and our advice on them, please click here.
Get in touch
For further information contact Justin Sadler or Paul Wild by telephone 0118 958 9711 or send an email to: [email protected] If this relates to settlement agreements send your email to: [email protected]
-
From start to finish these guys made me feel at ease during a turbulent time. First class service from all who I death with so I highly recommend them. 
Mo Elliot
5/06/2020 - Vanessa Ruparel helped me to write my will after I re-married. She also sorted out my uncle's probate, which was more complicated than we anticipated. I have used Barrett & Co before many years ago when I divorced, so I didn't hesitate to use them again. They always give a quote up front for their work and if there are any problems and costs change they inform you and get your approval. I would never hesitate to recommended them (and I have done so). Thank you for all your help.
Pam Bryant
4/17/2020 - Used Barrett and Co extensively with my business and recently for a personal matter, excellent service on all occasions, you only get what you pay for, would have no hesitation in recommending their services. A big thank you to Vanessa for all her advice and assistance.
George Darling
4/17/2020 - Sometime ago I used Barrett and Co to create a will using Will Aid and it was a friendly and simple process. I have recently been made redundant so I went for an hours fixed fee meeting to discuss my settlement agreement, again this was a very informative meeting and helped me understand the process and provide me with useful questions to ask.
Keith Harris
3/30/2020 - Paul Wild is the best solicitor you can wish for. I benefited from his crucial law experience and wisdom. Excellent customer service.
Sue French
3/05/2020 - During the process of repossession proceedings against my tenant I felt reassured by the open and honest advice I received from Chris Miller. I was impressed by the efficient, professional and friendly service. I can highly recommend this company.
Eva Timlin
3/01/2020 - I had a very delicate but deeply personal matter that I needed professional legal help with.in short it involved a matter of my father's will,inheritance and money owed to me from a sibling.After much research I contacted Justin at Barrett and co.After an hours consultation with him and Hilary Buckle I gained the confidence to take further steps.it was in their mannerism and approach and they even gave me a written quote detailing exactly what stage they would charge me for ,and even this quote was much lower than other specialst solicitors .They were so considerate with me and their reputation so high that my sister instantly gave me large sum of money owed to me and as a bonus all siblings have begun mending our relationship.
azam khan
2/06/2020 - I used Barrett and Co for my will via the Will Aid scheme. They were very professional, efficient and friendly. They took time to explain things simply and effectively - offering advice on the implications of different scenarios and ensuring I 'future proofed' my will. Very pleased with the service all round. Charlotte Fox was excellent.
Gilly Lea
1/22/2020
