If you’re having problems at work and are unable to settle the issue through company channels such as the grievance procedure, there is the option to leave under the terms of what is known as a settlement agreement (previously known as a compromise agreement) if you and your employer both agree.
You will need a solicitor for settlement agreement advice and JPP offers a fast and reliable services provided by experienced solicitors.
A settlement agreement is a legally binding contract between you and your employer under which you agree to end your employment and not to bring claims in exchange for a financial payment (and in some cases, other non-financial benefits, such as a reference and keeping your work phone or computer).
Benefits for the employee
There are many advantages of settlement agreement for the employee. These include:
• Financial compensation for any ill-treatment at work without having to deal with the stress, uncertainty, delay and potentially cost of bringing a claim in the employment tribunal.
• An opportunity to negotiate a payment that exceeds the statutory minimum.
• Ending an unhappy relationship with your employer sooner rather than later.
• The option to include benefits such as a reference which could not be awarded even if you were successful at tribunal.
However, to reach a settlement agreement with your employer, you will have to obtain the services of a solicitor, ideally one experienced in employment law, such as from the employment law team at JPP Law. It’s standard practice for employers to contribute towards the legal fees of a solicitor advising you on the terms and effect of entering into a settlement agreement.
If you need settlement agreement advice we have specialist settlement agreement advice solicitors. You can book online and same day appointments may be available.
Employment Disputes: Agreement versus Employment Tribunal
If you do have problems at work which you have not been able to resolve internally, you may initially be considering bringing a claim in the employment tribunal. However, there are many benefits to be gained over choosing a settlement agreement over going to a tribunal. A settlement agreement can finalised in a matter of a few days, even sometimes just hours. On the other hand the tribunals are extremely overburdened at the moment so it would be likely to take between 1 -2 years before your claim is heard.
If you choose to go down the tribunal route, there is no guarantee that you will get any award, whereas under a settlement agreement you will have a legally binding agreement which details what your employer should pay you. Under a settlement agreement you will often also be provided with a basic reference which can help you find a new job. An employment tribunal cannot secure this benefit.
Financially, the cost of a securing a settlement agreement is likely to be much less than going to an employment tribunal. This is because the costs for legal advice to obtain advice on a settlement is usually borne by your employer whereas, unless you have legal expenses insurance, you would probably need to pay all the legal costs if you instructed a solicitor to represent you bringing a tribunal claim.
Statutory Redundancy versus a Redundancy Settlement Agreement
Redundancy encompasses a procedural framework designed to ensure a fair process for employees, primarily those who have served for a minimum of two years. This process typically culminates in the provision of a statutory redundancy payment. In the event of redundancy, employees are often granted the right to contest the decision and pursue a claim for unfair dismissal against their former employer, should they deem it necessary.
On the other hand, a settlement agreement serves as a comprehensive document that establishes the terms under which both the employee and employer mutually agree to terminate their working relationship. It normally involves some form of enhanced redundancy package which is generally more appealing than the statutory redundancy payment. Upon reaching an agreement on the terms stipulated in the settlement agreement, which should be fair and subjected to review by an independent solicitor, signing the document legally precludes the employee from pursuing legal action or seeking additional financial compensation through the court or a tribunal in the future.
We look more closely at the Redundancy Settlement Agreement in this Q&A.
Finalising the Settlement Agreement
Before a settlement agreement can be valid, an employee has to receive advice so that they understand what the agreement says and what the effect of signing it is. At JPP we have employment lawyers who specialise in providing advice on settlement agreement. We can take you though this process in a clear and easy to understand fashion.
If you need settlement agreement advice we have specialist settlement agreement advice solicitors. You can book online and same day appointments may be available.
JPP Law Settlement Agreement Advice Solicitors
When you receive Settlement Agreement Advice from JPP Law you can expect:
- Free Advice: it is standard practice that employers pay.
- Tailored Advice; advice that is focused on achieving the best possible outcome for you.
- A Fast and Responsive Service; book online, same day appointments sometimes available.
- Remote Service Across England And Wales; advice via telephone or video calls – no need to visit an office.
To book online today visit: Settlement Agreement Advice Solicitors
