We understand that entering into a settlement agreement can be a daunting experience. That’s why we’ve broken down the process and put together some frequently asked questions, so you know what to expect.
At Charles Coleman, we regularly advise individuals of the merits of entering into a settlement agreement. We work with empathy and sensitivity, and always with the aim of getting the best possible deal for you.
What is a Settlement Agreement?
A settlement agreement is a legally binding agreement between an employee and employer which sets out the terms upon which the employee’s employment with the Company will end. Sometimes, Settlement Agreements can be entered into whilst the employee remains employed, though this is not as common.
The settlement agreement will generally oblige the employee to waive any legal claims they may have against the Company in return for a sum of compensation or other benefits
Why would I be offered a Settlement Agreement?
Settlement agreements can arise out of various circumstances, such as workplace disputes or grievances, redundancy processes, TUPE or even agreed departures. The aim, however, is always the same – to settle legal claims against the employer in return for compensation for the employee.
Why do I have to see a solicitor for legal advice on the terms of the Settlement Agreement?
Unlike other contracts, settlement agreements are not binding unless the employee has sought legal advice on the terms of the agreement and the effect that this will have on their ability to pursue their rights. This is a legal condition for settlement agreements to be valid. The solicitor will provide the employer with a certificate to evidence that you have received legal advice.
Do I have to pay Charles Coleman legal fees for advice on the Settlement Agreement?
We work on a fixed fee basis. In the majority of cases, we are happy to accept the employer’s contribution to legal fees, as long as it’s fair and reasonable. If we need to, we’ll seek to negotiate an increase in fees with your Employer. It’s rare for us to ask the employee to contribute anything.
How long does the process for a Settlement Agreement take?
The settlement agreement process usually moves fast as both parties are keen to lock down the terms and reach a binding agreement. The employer usually sets the deadline. If deadlines are unreasonable, we will push back on your behalf to ensure that you have adequate time to consider the settlement agreement and its implications for you. For urgent matters, we’re often able to provide same-day advice.
Can I negotiate the terms with my employer?
Yes, you are under no obligation to accept the first offer your employer makes. Your solicitor will take a full record of your employment history to understand and advise you on whether there are grounds upon which an improvement to the offer can be negotiated.
Non-financial elements can also be negotiated, such as keeping company property, wording of references, extension of benefits, the removal of restrictive covenants or payment deadlines.
Why choose Charles Coleman to advise on your Settlement Agreement?
We regularly advise employees on settlement agreements and draft and negotiate agreements for employers. We’re therefore uniquely placed to understand the negotiating position of both sides. For our employee clients, this expertise proves invaluable in being able to strategise and negotiate the best deal possible.
We advise in plain English and break down the jargon so that you clearly understand the terms of the agreement and the effect that it will have on you. We work fast and efficiently, keeping you updated throughout the process. You’re always welcome to come and see us in our office, or we can handle the matter virtually.
