Our settlement agreement solicitors will help you achieve the maximum possible settlement from your employer, no matter the circumstances.
Getting specialist advice before confirming a settlement agreement is a legal requirement, and speaking to a solicitor before commencing negotiations will help you to achieve the best possible settlement.
Settlement agreement negotiations are often extremely time-sensitive, meaning it is vital to instruct an experienced solicitor who is able to act immediately to negotiate the best-possible settlement and ensure the final agreement is fair. Our employment lawyers have a wealth of experience negotiating settlements of all values. They know just what to do to secure the ideal result.
What is a settlement agreement?
A settlement agreement is a legally binding agreement between an employer and an employee in which the employer offers to pay the employee an enhanced sum of money in exchange for the employee agreeing to give up their right to bring claims arising out of their contract of employment and/or its termination.
Settlement agreements are usually used in connection with a contract of employment coming to an end, with the employee leaving the company upon conclusion. An agreement could be used where employment is ongoing but both parties want to settle a dispute, however.
In either case, coming to a fast, favourable resolution is a vital part of you being able to swiftly move on with your life.
Why should I accept a settlement agreement?
In many cases, a settlement agreement is the ideal outcome for both employer and employee. It allows both parties to move on and helps you avoid the need to bring a costly, time-consuming claim against your employer.
By agreeing to a settlement, you are able to move on and look to the future while still being fairly compensated, rather than spending a lengthy period of time going through the process of an employment tribunal.
Are settlement agreements and compromise agreements the same?
You will often see the terms ‘settlement agreement’ and ‘compromise agreement’ used interchangeably. Although this can be confusing, it is because they essentially are the same thing.
Compromise agreements were officially renamed to settlement agreements in 2013, as the government looked to better describe the intentions of them. Alongside the name change, the government introduced the concept of pre-termination negotiations, which are intended to make it easier for employers to initiate settlement conversations with employees with less risk of the conversations being admissible in tribunal proceedings.
Despite these changes, people often still use both phrases. If someone mentions a compromise agreement, they are really talking about a settlement agreement.
What should I do if offered a settlement?
Although people often expect a settlement agreement, being offered one can sometimes come as a shock. Worries about your future and getting another job can lead to you forgetting the contents of the meeting, something which may be vital if negotiations don’t go as planned. As such, it is vital that you write down everything from your meeting as soon as possible, something which will help you to provide accurate evidence should you need to bring a claim against your employer.
Following this, you should seek immediate legal advice. A solicitor will be required to sign off any settlement agreement, but by instructing a solicitor to negotiate at the start of the process you are maximising your chances of receiving the best deal possible.
A specialist solicitor will also help to establish if you have ground for unfair dismissal and whether it would be wise to take that step, and help you understand exactly what you are giving up by taking the settlement. Ultimately leaving you secure in the knowledge that you have left after receiving the best available terms.
How can Lupton Fawcett help?
Our team have been helping people achieve the best settlement agreements for many years. We know exactly how to get the best deal possible in your circumstances as efficiently as possible, so you can focus on moving forward with your life.
Read how we helped an employee who felt she was being treated unfairly here.
To speak to one of our settlement agreement solicitors, call us on 0330 404 6419 or fill in our contact form to email us.