What are settlement agreements?
These are legal agreements between the employer and employee, usually made to agree on the terms on which the employee will depart. The employer can agree to pay an additional sum of money and the employee promises not to bring any claims against them, such as unfair dismissal. They are frequently used in redundancies but can be agreed upon in any circumstances where there is a dispute. For example, an employee may wish to leave following a disciplinary allegation or after bringing a grievance.
Do I need a lawyer?
Yes. To be legally binding a lawyer must advise on the terms and the effect of the agreement and supply an adviser’s certificate confirming that they have done so.
How much does it cost?
If an employer wants you to sign a settlement agreement, they should offer an amount in the agreement to cover the full costs. For straightforward agreements, this should be £250-£500, but it may be more if there are complicated issues such as an incentive plan. In most cases, we will be able to complete a settlement agreement within the amount the employer offers to pay.
Why Simons Rodkin Solicitors LLP?
If you are sure you want to sign the settlement agreement, we are able to offer a fast turnaround. We can go through the agreement with you by phone or video call and you can sign the agreement online and complete the process on the day or soon after.
If you are not sure about the agreement, we can advise you on your options and support you in trying to negotiate a better deal. We have experienced litigation lawyers and if you decide not to sign the agreement, we can represent you in any claim you wish to make against your employer. Many firms will sign off the agreement for you but will not be able to support you if you decide to turn down your employer’s offer.