For Employees:
When facing a legal dispute with your employer, they may offer to resolve the matter amicably by asking you to sign a settlement agreement. This agreement formally ends your employment by mutual consent, and in return, you receive compensation for the loss of your job.
For Employers:
If you’re dealing with a disruptive employee who is affecting your business’s profitability and team morale, we can help. We will assess your situation and provide practical solutions to manage the issue effectively.
What is a Settlement Agreement?
A settlement agreement is a legally binding contract between an employer and an employee, typically used to resolve employment disputes and manage difficult workplace relationships. By signing the agreement, the employee agrees to end their employment on a specified date in exchange for compensation, including pay for loss of earnings, notice, holiday, and any outstanding wages. In doing so, the employee waives their right to bring any future claims against the employer in an Employment Tribunal or Civil County Court.
Redundancy Situations:
In cases of redundancy, employment contracts may be terminated with the employee’s consent. Employees can choose to volunteer for redundancy in exchange for a redundancy package. The employer’s solicitor will draft the settlement agreement, which can be complex. It’s crucial that employees seek immediate legal advice from a qualified solicitor with Professional Indemnity Insurance to safeguard their interests and negotiate favourable terms.
Benefits of a Settlement Agreement:
Employees benefit from a standard reference, payment for outstanding wages and holiday pay, as well as compensation for future earnings. However, in some situations, the employer may choose not to provide a reference or make payments. Both parties are legally bound by the terms of the agreement, and employers are prohibited from making false statements.
Additional Benefits:
Both employer and employee can agree to a confidentiality clause, ensuring that the details of the settlement remain private. Employees also receive a standard reference, helping them secure future employment while receiving additional compensation.
Why Choose Legal Comfort?
- Initial Consultation: We ask you to bring all relevant documents, proof of identity, and a utility bill to comply with Money Laundering Regulations.
- Client Care: Our retainer terms will be fully explained in a Client Care Letter.
- Professional Conduct: We conduct conflict of interest checks and represent either the employer or employee exclusively.
- Prompt Action: We arrange your first appointment at a convenient time and explain the terms and implications of the settlement agreement.
- Negotiation: We handle wage calculations and negotiations on your behalf.
- Certification: We provide the necessary adviser’s certificate to attach to the settlement agreement.
- Case Follow-Up: We ensure both parties comply with the terms of the agreement.
- Tax Advice: We offer guidance on any tax, PAYE, or VAT liabilities associated with the agreement.
- Recovery Action: If the employer fails to pay, we take prompt and decisive legal action.
- Transparent Fees: Our fee for this service is £750 plus VAT, and it may be covered by your employer.
- Termination Advice: We provide detailed advice on the reasons for termination and your prospects for future claims.
- Timely Action: It’s essential to act quickly, as employers often set payment deadlines and may withdraw offers if countered.
Legal Advice:
If you are facing voluntary redundancy or have been offered a settlement agreement, contact us immediately for expert legal advice. You can also email us your query or use our contact form for more information.