Redundancy Settlement Agreement Solicitors
Have you been offered a redundancy settlement agreement by your employer?
If so why not talk with one of our expert Redundancy Settlement Agreement Solicitors who are specialist employment solicitors. They will help to review, prepare and advise on settlement agreements.
With a wealth of expertise in dealing with settlement agreements, they can provide you with quality, easy-to-understand advice.
We can advise you on your settlement agreement, ensuring you understand your rights. We can negotiate with your employer if we think you are entitled to more. From beginning to end, your agreement will be dealt with by a knowledgeable and supportive solicitor.
We appreciate the importance of getting your agreement right. Our solicitors understand the complexities of dealing with settlement agreements and will provide you with fair adviceHave ou.
What is a Redundancy Settlement Agreement ?
Settlement Agreement Solicitors
A redundancy settlement agreement, sometimes called a compromise agreement, is a contract where you and your employer agree to resolve a particular employment issue (or issues) on specific agreed terms. Under the terms of a Settlement Agreement, you will give up your right to bring any claims against your employer, in return for a sum of money (a Termination Payment).
It is commonly used where the employment relationship is about to end but could also be used to settle an existing dispute where the employment relationship is ongoing.
How Do I Negotiate A Better Redundancy Settlement Deal?
It’s important that you fully understand what leverage you have in this regard and that you are able to manage your own expectations. There’s no use in asking for 2 years’ salary as a termination payment if your claim is for unfair dismissal where the maximum that a Tribunal can award is 12 months’ salary (together with any basic award). On the other hand, if your role has been placed at risk of redundancy and your employer’s settlement offer is less than your statutory redundancy entitlement then it wouldn’t make much sense for you to accept their offer.
Settlement Agreement Solicitors
With negotiating a Settlement Agreement, you also need to consider whether there are any other ways that you can enhance to terms of the agreement. Aside from the financial aspect of the agreement, this could be to agree that; you keep certain company property after the termination date, the employer removes or reduces the impact of any post-termination restrictions or for you to be placed on garden leave during your notice period (or for you to receive a payment in lieu of your notice period if this would be preferred).
The success of any negotiations will ultimately depend on an employer’s willingness to engage. Your employer might be worried about damage to their reputation or the expense of defending a tribunal claim. On the other hand, they may be perfectly prepared and content to defend any claims if their commercial offer for settling isn’t accepted. We can discuss and formulate the best strategy depending on your employer’s motivations and anxieties.
Benefits of Signing a Redundancy Settlement Agreement
Settlement Agreement Solicitors
Settlement Agreement allow for a clean break and can be a speedy, stress-free and cost-efficient way of concluding the employment relationship or resolving an existing dispute. This gives an employer certainty and reduces anxiety around an employee potentially bringing a claim against it. The employee usually receives a payment that they wouldn’t ordinarily be entitled to and avoids the need to commence time-consuming, stressful and costly litigation.
For both employers and employees, the terms can be mutually agreed which means that a Settlement Agreement may provide for an agreed reference and permit an employee to make an announcement to colleagues in relation to their departure.
Generally, a tax-free payment of up to £30,000 can be paid to an employee as compensation under the terms of a Settlement Agreement
As Settlement Agreements are only valid once you have taken independent legal advice on its terms, employers usually provide a legal fee contribution. Depending on what the employer is contributing, there is usually nothing for the employee to pay. As it’s a legal requirement for independent legal advice, this provides an opportunity for the employee’s solicitor to check through the agreement to make sure that the settlement package amounts to a fair deal
Disadvanatges of Signing A Redundancy Settlement Agreement
Of course; depending on how the process is managed, this could easily jeopardise the ongoing relationship if a Settlement is not reached. Likewise, this may impact on staff morale if it’s being used as a substitute for good HR and management practices.
In addition (for employers), as Settlement Agreements usually provide an enhanced payment to incentivise an employee to sign it, they can be quite costly. Although this should be offset against the potential long-term savings – it avoids the need to carry out the potentially lengthy and convoluted process and removes the risk of getting that process wrong and landing yourself a Tribunal claim against a disgruntled employee.
How it works
Book free consultation
Choose a free consultation at a time that suits you. This will be booked directly with our trusted partner law firms.
An approved panel solicitor will contact you at your preferred date and time to discuss your needs and requirements.
We get to work to provide you with the required independent legal advice and aim to dispatch documents on the same day.
Frequently Asked Questions
As it is a legal requirement for employees to have independent legal advice on the terms and effect of a Settlement Agreement, it is common practice (although not a legal requirement in itself) for employers to agree to contribute towards your legal fees. This is generally between £250 and £500 plus VAT which is normally sufficient to settle our fees and is paid directly by your employer.
We check the content of your settlement agreement, making sure you understand the terms and are aware of your rights. We also consider whether or not they are offering you enough money, and if not then we will negotiate this with your employer.
We will advise you on your settlement/compromise agreements, ensuring you understand your rights. We will also negotiate with your employer if we think you are entitled to more. Our solicitors understand the complexities of dealing with compromise or settlement agreements and will provide you with fair advice.