Are you asking yourself: “I’ve been offered a settlement agreement. What do I do?” This article gives an overview of the answers. Please call us for more details.
If you’ve been offered a settlement agreement by your employer (or a compromise agreement if you’re in Northern Ireland), it’s likely that you’re in one of these situations:
- Your job is under threat of redundancy and your employer offers you compensation above the statutory redundancy package
- You’ve made a complaint against your employer because they’ve treated you badly in some way, and you’re considering whether to take them to the employment tribunal
In either case, you have the legal right to take your employer to court if you want to. To avoid the cost and hassle, they offer to pay you a sum of money (a settlement) in return for you giving up that right.
Offered a settlement agreement: What you need to do
The first thing to note is that a settlement agreement is a legal document, and it shouldn’t be signed without care. In fact, by law you have to take independent legal advice first (usually, your employer will pay for this).
This kind of service is exactly what we do, day in, day out. We help you negotiate the best deal, and explain all the implications involved.
You don’t have to sign the settlement agreement until you’re completely happy, no matter how much pressure you may feel from your employer to do so.
If the situation arises, we will help you handle it.
If you decide you want to take your employer through the legal process, do not sign the agreement!
We’ll (metaphorically) hold your hand through every step of the way.
Offered a settlement agreement: What you need to know
There’s a strict timeframe of just three months less one day from the date of the incident, so it’s important to involve us early on.
Your employer has an obligation to follow a proper procedure whether dealing with a grievance or redundancy. If they don’t, they risk being obliged to pay you extra.
The settlement agreement must be in writing, and give details of the employment lawyer who has reviewed it with you.
It must include a breakdown of the amount you’ll receive, including salary, bonuses, holiday pay, stock & share options etc.
It can also include details of other benefits you’ll get, such as a good reference, as well as of any restrictions you’ll have to comply with, such as agreeing not to work for a competitor for a period of time.
Related reading
Been offered a settlement? Ask these questions before you sign.
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To make a FREE enquiry based on any of the issues raised on this page call us on 0808 168 7288, or complete an Online Enquiry.
We have already helped thousands of people to win millions of pounds in compensation.
We will also discuss the best methods of funding your case and seek to reach a solution that best suits your needs. This can involve a “no-win, no-fee” agreement if appropriate.