We can help and we can usually advise you for FREE.
FREE SERVICE – We are usually able to offer clients a free service for advice on settlement agreements. This is because most employers will contribute towards the legal costs of having the settlement agreement reviewed and signed off by a solicitor. Providing your employer’s contribution is at least £500 + VAT (or £750 + VAT if they are asking you to reaffirm your settlement agreement) we should in most situations be able to advise you for free. We will inform you if we are unable to advise you within this legal fee contribution. We usually send our invoice directly to your employer for payment so you have nothing to worry about.
We are specialist Settlement Agreement Solicitors and can help you obtain the best possible agreement.
We can offer a fully remote service and act for clients in all parts of the country. It is not necessary for you to visit our offices but if you prefer, we can arrange an in-person appointment at our office in central Guildford.
Contact us on 01483 303636 or info@justemployment.com
or by using the form below and one of our solicitors will contact you shortly.
What is a Settlement Agreement?
A settlement agreement (previously compromise agreement) is a legally binding contract between an employee and an employer which takes away the employee’s rights to make a claim in a court or tribunal. In exchange, the employer promises various payments, usually beyond what the employee is legally entitled to. Settlement agreements can be used to end an employment relationship; settle disputes whilst still employed or to settle claims already issued at the Employment Tribunal. They are commonly used in redundancy situations or to resolve grievances.
In order for a settlement agreement to be binding, the terms of the agreement must be in writing, it must relate to a particular complaint/dispute and you must receive advice from a suitably qualified lawyer or authorised member of a trade union (who is identified in the settlement agreement), who needs to confirm that a contract of insurance in relation to the advice exists. Strictly speaking, most solicitors can advise on settlement agreements but only a solicitor with experience in employment law can give expert advice on the full effect and meaning of the typical terms found in settlement agreements.
We have a team of highly experienced employment law solicitors who have expertise in all areas of employment law. We are able to provide bespoke settlement agreement advice tailored to your circumstances.
Will I need to pay tax on the settlement sum?
Compensation sums (also known as Termination Payments or Ex-Gratia Payments) up to £30,000 can usually be paid tax free.
Any sums which would ordinarily be taxable (such as wages, bonuses, commission, pay in lieu of notice or holiday pay) will be subject to tax.
Will I need to keep the Settlement Agreement confidential?
Every settlement agreement is different, but it is common that employers will want to keep the terms and sums of money paid to remain confidential between you and them.
Will I be able to bring any claims against my employer after I sign the Settlement Agreement?
The aim of a settlement agreement is to settle a particular issue (e.g. a redundancy or a dispute), however, most employers will also want satisfaction that you will not pursue any other claims against them (particularly if your employment is terminating). There are some claims which cannot be waived via a settlement agreement, and it is common that accrued pension rights and unknown personal injury claims are not waived.
Will I get a reference?
If the settlement agreement is to terminate your employment, then it is common to agree a reference. We have a strong success rate of securing suitable references for our clients.
How long will it take?
We aim to agree terms of a settlement agreement as quickly as possible, and most are finalised within 7 days – usually less. Every settlement agreement is different, but it may be possible to offer a SAME DAY service.
Can I instruct you to negotiate an improved settlement sum?
Yes! If you are unhappy with the terms of the settlement agreement, we can help negotiate a better package. We have a strong record of achieving this for our clients. Our fees will usually be more than your employer’s legal fee contribution, but we will provide you with an estimate of our fees for doing this.
How much does your advice cost?
It is common for an employer to pay a contribution to the cost of this legal advice. Solicitors normally charge between £500 and £1,000 plus VAT (at 20%) for advising an employee on the terms and effects of a settlement agreement. If negotiations on sums and terms are required, the cost may be more than what your employer offers to pay. Our fees for negotiating a higher settlement sum (or an exit package) are likely to be in the region of £1,200 – £2,500 plus VAT depending upon the complexity of the situation.
If the sum offered by your employer is not sufficient, we will inform you and we can often negotiate a higher legal fee contribution with the employer.
