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    Settlement Agreements

    Being given a settlement agreement by your employer is a bit like being presented divorce papers by your spouse, the relationship may recover and continue, but the odds are against the relationship surviving, let alone thriving.

    Like a divorce, you will need expert legal advice enabling you to achieve as favourable financial terms as possible, while also not burning any bridges.

    You may have some immediate questions:

    • Is the financial offer fair?
    • Can the financial offer be improved?
    • Are the terms within the agreement reasonable?
    • What are the tax implications?

    A sturdy tight rope to walk but one we have successfully navigated for 1000s of clients. The vast majority of clients are pleased with the outcome once we have been instructed.  For advice regarding your settlement agreement, call our employment solicitors and expert legal team on 01780 757 589, request a callback or complete our quick online enquiry form.

    We have published several guides on Settlement Agreements, downloadable here.

    We have a fee guarantee. We won’t charge you unless we improve your financial offer. Over the years we have secured many millions of pounds for clients. For many clients we improve the employer’s original offer in the settlement agreement, sometimes by as much as 500%.

    We will also ensure that your benefits are preserved wherever possible. We have experience in handling LTIP grants and awards and ensuring your rights and entitlements are preserved.

    We try to ensure that your settlement will be of a size to enable you to have sufficient funds to get you through to your next job.

    Settlements of between 6 to 12 months pay and benefits are not unusual.

    We act for all sorts of employees from Chief Executives of listed companies through to cleaners and those on a minimum wage. No job is too big or too small.

    You will not be disappointed with our service. That’s our promise.

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    Further Guidance about Settlement Agreements

    Our employment solicitors have years of experience in negotiating the best financial terms in settlement agreements.

    The benefits of entering into a settlement agreement can be:

    Quicker process: A settlement agreement can avoid the amount of time a case will take to reach a conclusion and save the expense of litigation.

    Guaranteed Compensation: Voluntarily entering into a settlement agreement means you’re giving up the right to pursue an employment tribunal claim (as specified within the agreement) against your employer, in turn for payment of agreed compensation.

    This takes the risk out of pursuing an employment tribunal or court case and being unsuccessful. Also, it offers the certainty of you receiving compensation within an agreed timescale.

    Most clients prefer jam today. Most clients want to move on and draw a line. We recognise that there is a trade off between certainty and maximising your settlement.

    Professional Reference: Often, your employer will agree to provide you with a reference for future employees, which is a benefit as an Employment Tribunal has no power to order employers to provide one for you.

    Tax-Free payment: An agreed lump sum for payment of compensation for loss of employment can be paid tax-free up to £30,000. Other tax free allowances are available in certain circumstances.

    Total Confidentiality: The facts and terms of a settlement agreement are customarily kept confidential to the employee and employer other than for disclosure to professional advisers and the employee’s immediate family.

    What is a Settlement Agreement?

    The key points are:

    • A settlement agreement is a binding agreement between you and your employer. Once signed, it means that you are not entitled to bring a legal claim against your employer concerning your employment.
    • Because you are giving up valuable rights, a settlement agreement is only valid if you have been advised by an appropriate adviser, which is usually a
    • Some settlement agreements for senior employees make provision for a period of garden leave. You may be asked to sign two settlement agreements: one when your garden leave starts (the belt), and another when it ends (the braces).
    • There are two exceptions to settling all claims: Personal injury claims are usually excluded unless you are aware of any actual or potential claims at the point of signing. Any rights accrued under your pension scheme are also excluded.
    • Usually, the employer will pay a contribution which generally covers the solicitor fees, and the amount will be set out in the settlement document.

    We have published several guides on settlement agreements, downloadable here.

    Our years of experience in acting for 1000s of employees who have been given a settlement agreement has sometimes improved the final financial offer by tenfold.  You can contact our employment lawyers and expert legal team on 01780 757 589 request a call-back or complete our quick online enquiry form.

    Settlement Agreements


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