Settlement Agreements

Settlement Agreements At Tinsdills

Whether you are an employee who has received a settlement agreement from your employer, or a business seeking to settle a claim brought against your business by a current or former employee, we have a dedicated team of employment law solicitors on hand to provide you with sound employment law advice. Our services include:

Specialists In Settlement Agreements

Settlement agreements, or compromise agreements (as they were formally known), are legally binding contracts used to set out the terms and conditions agreed between an employer and employee to end an employment relationship or to resolve a dispute or employment claim. The agreement will usually involve payment to the employee by the employer, in return for the employee giving up their rights to bring claim in an employment tribunal.

Being faced with a settlement agreement can be daunting for any employee and they will need time to decide what to do next. Whether an employee decides to agree to the terms of the settlement agreement, or they wish to negotiate with the employer for a more favourable settlement, we are here to help.

In order to be legally enforceable, the employee will need to seek independent legal advice on an employment settlement agreement before signing and entering into it. At Tinsdills, we are able to provide this employment law advice. We can discuss the merits of any employment claims the employee may have and help them to weigh up the options available to them in a caring and professional manner.

For an employer seeking to offer a settlement of an actual or potential employment claim, we can assist with the preparation of the settlement agreement and the negotiation of its terms.

We may also be able to offer a reduced rate of fees where we are retained to provide advice on bulk settlement agreements (for example, in the event of large scale redundancies, whether voluntary or compulsory).

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    In short, yes. It is a requirement of any employment settlement agreement that the employee obtains legal advice independent of the employer to ensure that they have fully understood the effects of signing the agreement and to prevent the employee from being coerced into signing it by the employer.

    Usually, the employer agrees (as a term of the settlement agreement) to pay the employee’s legal costs for obtaining legal advice before signing the same. The contribution towards the employee’s legal fees is usually capped and will be conditional on the employee proceeding with the agreement. If the employee decides not to proceed with the settlement agreement, the employer may refuse to pay their legal costs as their obligation to do so will be contained in the agreement, which has not been entered into. In that case, the employee would be responsible for their own legal costs unless the employer (at its discretion) agrees to pay the employee’s legal fees notwithstanding that they have not proceeded with the settlement agreement.

    Generally, once you have entered into a settlement agreement, you will have waived your rights to bring a claim against the employer in the employment tribunal. However, there are certain limited types of claims which you may still be able to bring. These will be set out in the agreement but may include latent personal injuries that you were not aware of at the time as well as claims relating to work pension schemes. Speak to one of our dedicated employment law solicitors for more information.

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