If your employment is coming to an end, whether by reason of redundancy or otherwise, and your employer asks you to sign a settlement agreement you will need a solicitor to advise you on the terms and effects of the agreement. But should you accept a settlement agreement?
Whether or not to accept a settlement agreement will depend entirely upon your individual circumstances. Issues to take into account include:-
- Time – For some the speed of ending the employment relationship or resolving a long running grievance/performance procedure or Employment Tribunal claim will be enticing.
- The financial package – the total package offered may be more than sufficient for you or you may wish to negotiate a higher settlement sum.
- Your employer’s financial position – you may want to consider whether your employer may need to restructure once the Job Retention Scheme (furlough) ends on 30 September 2021, will they will still require your services and will they will be as generous in the future with offering enhanced packages?
- Your employment prospects – Are you likely to be able to find work in the field you wish to work in?
- Do you have any employment law or personal injury claims? – a settlement agreement will usually prevent you from bringing any claims against your employer.
- Stress – A settlement agreement is likely to be less stressful than continuing with a grievance or pursuing an Employment Tribunal/Court claim.
- Redundancy – Are you at a real risk of being selected for redundancy? If so, you may only be entitled to statutory redundancy pay rather than an enhanced package if you decline the offer of a settlement agreement.
As employment law specialists we will bear in mind your individual circumstances and concerns. Read more about the settlement agreement service provided by JE Solicitors and how we may be able to advise you for FREE.
Disclaimer: The content of this article is for information only and should not be taken as specific legal advice. Please contact us for tailored legal advice.