Have you received a settlement agreement from your employer? Need advice from an Expert Settlement Agreement solicitor? Phone now on 03302233288 for a free consultation.
What is a settlement agreement?
A settlement agreement is a legally binding contract which is used to end the employment relationship between an employee and employer. These agreements used to be called compromise agreements and are common because they offer a mechanism for both parties to negotiate an acceptable basis to end the employment.
In return for some advantages to your employer you may be offered a tax efficient payment and an agreed reference. Your employer will make the payment conditional upon you receiving advice from a solicitor about the terms of the agreement. Your employer will usually offer a contribution towards the legal fees of your solicitor. Once you and your solicitor have signed you cannot then bring any claims in an Employment Tribunal.
“…I was very pleased with the way that Carl helped by dealing with my redundancy settlement quickly and with no fuss. Leaving my job was quite stressful and Carl made things easier by dealing with my employers efficiently and keeping me updated. He even negotiated an increase in the original settlement offer! I would recommend Carl’s services to anyone who has been given a settlement agreement by their employer…”
– L.W. (Leeds)
How does a settlement agreement benefit me?
Ending your employment by using a settlement agreement gives you certainty and can provide peace of mind at a difficult time. Settlement agreements allow you to be certain when your employment will end (the termination date), how much compensation you will receive (notice pay and any compensation payment), how that payment will be taxed and it is common to agree a reference which your employer will provide to any future employer.
The law allows you to take a compensatory payment up to the sum of £30,000 without the deduction of tax and these type of agreements can therefore represent an opportunity to manage your tax exposure efficiently.
Your employer will wish to be certain that you have obtained adequate professional advice about the terms of the agreement and it is therefore usual for the employer to make a contribution towards our fees for advising you upon the settlement agreement terms.
Changing jobs is stressful for everyone. A settlement agreement will give you clarity and certainty about the terms of your exit which may make it more straightforward for you to “move on” to your next job. Without the worry of the terms of your exit, what money you will receive or what your reference will say you can focus on getting a great start in your new role.
“…When I was leaving my job I needed the services of a specialist settlement agreement solicitor and Carl Atkinson was recommended to me. Carl provided me with great advice and fantastic support throughout the process. He managed the completion of the settlement agreement efficiently and even arranged to meet me at a location close to my home so I did not have the hassle of travelling into the the City Centre and expensive parking charges…”
– P.M., (Cheshire)
How can we help you?
Over the course of my career I have dealt with many hundreds of these type of agreements. My record is dealing with 93 settlement agreements during the course of one day (although that is a day I would not want to repeat in a hurry). Let me use my experience to make sure your situation is managed efficiently, quickly and with no fuss.
Settlement agreements often include provisions about the amount of compensation that you will receive, confidentiality provisions (what you and the business can say about one another after your exit), your reference and sometimes may restrict who you can work for in the future (post termination restrictive covenants). Don’t leave these to chance, call us on 03302233288 and let us help you obtain the best terms for your exit.
Can we help negotiate the terms of a settlement agreement?
It is very common for us to help Clients to negotiate the best terms for their exit from the business. Often this results in better terms than initially offered. Call us for a free consultation to discuss how we can help you 03302233288.
While we are happy to add advise upon the terms of the settlement agreement after the details of the negotiated between the parties, we prefer to have a more proactive role in the discussions. We like to be instructed at an early stage when it appears inevitable that there will be a “parting of the ways” between employer and employee. When the negotiations are managed professionally my experience is that settlement agreements can provide an excellent mechanism for both parties to resolve their differences in a relatively amicable and certain manner. It can be very helpful for an exiting employee to understand when their termination date will be and what type of reference they will receive some time in advance of that event.
What if I am happy with the terms of the settlement agreement and I just want to sign?
This is no problem. If you have a settlement agreement that you are happy to sign and you can provide proof of your identity we can often deal with your settlement agreement the same day that you contact us.
We have vast experience of advising upon these types of agreements. We are well placed to offer you expert advice and ensure that you obtain the best possible outcome in your negotiations. We will then assist you to prepare a settlement agreement which will be legally compliant thereby offering you the security and confidence that you can rely upon the agreement if necessary in court.
Don’t leave the terms of your settlement agreement to chance, your future is too important. Call Carl Atkinson Solicitors on 03302233288 or get in touch to discuss how we can help you to resolve your employment law issues and download our free Client’s Guide to Settlement Agreements.