For Employees:
When you have a legal dispute with your employer, they may seek to resolve the issue amicably by requesting you to sign a settlement agreement. This agreement terminates your employment contract by mutual consent, in exchange for compensation for your loss of employment.
For Employers:
If you have an unmanageable employee who disrupts your business, causing loss of profit and low morale, we can help. We will assess your needs and provide practical solutions to address the issue.
What is a Settlement Agreement?
A settlement agreement is a legally binding contract between employer and employee, containing standard legal terms and complex clauses. This agreement helps manage difficult working relationships. Upon signing, the employee consents to terminate their employment on an agreed date. In return, the employer compensates for loss of earnings, notice pay, holiday pay, and any outstanding wages. By signing, the employee waives their employment rights and cannot bring any claims to an Employment Tribunal or Civil County Court.
Redundancy Situations:
In redundancy scenarios, employment contracts may be terminated with the employee’s consent. Employees may volunteer for a redundancy package. The employer’s solicitor drafts the complex settlement agreement. Employees should seek immediate legal assistance from a qualified employment solicitor with Professional Indemnity Insurance to protect their interests and negotiate terms.
Benefits:
Employees receive a standard reference, outstanding wages, holiday pay, and compensation for future earnings. However, in some cases, employers may not provide references or pay. Employers must not make false statements, and both parties are bound by the agreement’s terms.
Additional Benefits:
Both parties may agree to a dual confidentiality clause, preventing disclosure of the agreement’s terms. Employees benefit from a standard reference, enabling them to secure new employment and move forward with additional pay.
Why Choose Legal Comfort?
- Initial Consultation: Bring all relevant papers, proof of identity, and a utility bill in compliance with Money Laundering Regulations.
- Client Care: We explain our retainer terms in a Client Care Letter.
- Professional Conduct: We conduct conflict checks and act exclusively for either the employer or employee.
- Prompt Action: We arrange the first appointment at your convenience and explain the implications of the settlement agreement.
- Negotiation: We calculate wages and negotiate on your behalf.
- Certification: We sign the adviser’s certificate, attached to the settlement agreement.
- Case Follow-Up: We ensure both parties adhere to the agreement’s terms.
- Tax Advice: We provide guidance on Tax, PAYE, and VAT liabilities related to the settlement agreement.
- Recovery Action: We take serious action if the employer fails to pay.
- Transparent Fees: Our fee is £750 plus VAT, potentially payable by your employer.
- Termination Advice: We offer detailed advice on termination reasons and future claim prospects.
- Timely Action: Employees should act promptly as employers may set payment deadlines and withdraw offers if countered.
Legal Advice
If you face voluntary redundancy or have been offered a settlement agreement, contact us immediately for advice. Alternatively, email us your query or use our contact form.