Settlement Agreement Solicitors

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Settlement Agreement Solicitors in Birmingham, Northampton and London

Court proceedings are never pleasant and having a reliable legal team act on your behalf is the most effective way to manage the risks to your business. Based in Northampton, Birmingham and London our team of expert business dispute resolution and litigation solicitors use both traditional and alternative commercial dispute resolution methods to achieve the best outcome in any case we work on.

Whatever the size of your business dispute, we have the experience and commercial approach that you need to resolve it quickly and effectively. We understand the commercial implications of litigation and our focus is on protecting your reputation and minimising the impact on your business.

What is a settlement agreement?

A settlement agreement (previously referred to as a compromise agreement), is a legally binding contract between an employer and an employee which states the terms and conditions agreed upon by both parties to resolve an employment dispute or end employment.

Usually, under an employment settlement agreement, the employee receives monetary compensation in exchange for giving up their rights to make an employment claim against their employer.

Once the employee has agreed to the terms and conditions outlined by the settlement agreement, they will no longer be able to bring an employment dispute to a tribunal or make any other type of employment claims listed in the agreement.

Claims that can be settled with a settlement agreement

Many statutory claims can be resolved with a settlement agreement. Those include claims of unfair dismissal, discrimination, harassment, whistleblowing, maternity and equal pay claims.

Claims that cannot be settled with a settlement agreement

Entering into a settlement agreement cannot resolve certain disputes, such as failure to inform in connection with collective redundancies, failure to inform and consult or pay compensation under TUPE Regulations are amongst a few.

It is important to note that confidentiality clauses cannot and should not seek to prevent the employee from being able to make a protected disclosure of matters of public interest under ‘whistleblowing’ legislation (the Public Interest Disclosure Act 1998 (PIDA). Any provision which attempts to do so will be legally unenforceable.

What makes a settlement agreement binding?

For an employment settlement agreement to be legally binding, all of the following requirements must be met:

The agreement must:

• be in writing
• relate to particular complaints or proceedings
• be signed by the employee
• state that all statutory requirements have been met
• The employee must have received independent legal advice
• The independent adviser must have a current contract of insurance, or professional indemnity insurance

What terms should be included in a settlement agreement?

Each settlement agreement is different and terms vary depending on the specifics of the case, however, some of the common terms a settlement agreement is likely to cover are:

• The compensation amount (including taxable amounts)
• The date the compensation should be paid by
• All claims have been waived/settled
• Any claims that are not included in the settlement
• An indemnity requiring you to pay tax
• Set date for the end of employment (where applicable)
• Return of Property and Deletion of Information
• Confidentiality clause
• Restrictive covenants and warranties
• Obligations not to disparage
• Agreed reference
• Relevant law and jurisdiction for this settlement

How can we help you?

You are required by law to seek legal advice before a settlement agreement is agreed upon. Our team of settlement agreement solicitors, here, at Witan Solicitors, are always on hand to give you all the expert advice you need and to help you through all proceedings.

Our settlement agreement solicitors in Birmingham, Northampton and London can assist you by:

• Advising you on whether you have a claim and how much it’s worth
• Advising you on what amount constitutes a reasonable offer in your case
• Advising you on an already proposed agreement and whether it needs to be amended
• Acting as a negotiator on your behalf as required

Why choose Witan Solicitors to represent you

With decades of experience in dealing with various settlement agreements, we have built extensive knowledge on how to negotiate all types of employment disputes, from unfair dismissal to redundancy, discrimination and other workplace issues. Our team of employment agreement solicitors in Birmingham and Northampton is here to support you and give you employment law advice to reach a positive outcome in a quick and efficient manner.

Experts by your side

The employment law team, here at Witan Solicitors, have successfully negotiated hundreds of settlement agreements for clients not only in the Midlands but across the whole of the UK. We always fight to achieve the most favourable outcome in your case. Choosing Witan Solicitors to represent you means putting your trust in 30 years of professional experience.

Clarity at every step

We understand that the language used in a settlement agreement is very formal and the industry jargon can be confusing. We make it a priority to keep you informed at every step of the process and to explain to you the details of your settlement agreement in plain terms that even someone with no legal knowledge can understand.

We aim for a quick and fair resolution

Employment disputes can take their emotional toll on anyone, so we put all our years of experience into reaching a fair settlement agreement quickly and efficiently. You can rely on us to take care of the negotiations for you and secure the best possible arrangement for you, as fast as possible.

Who are our services for?

Both parties involved need legal advice to ensure that an adequate, legally-binding settlement agreement is reached. At Witan Solicitors, we have worked both with businesses and individuals to negotiate the best possible conditions for their employment settlement (compromise) agreement.

Employees

Your employer will usually propose a draft settlement agreement and our legal specialists can advise you on whether the agreement is fair or if it needs to be amended. We can estimate what a reasonable compensation sum is in your circumstances and we can help you negotiate good settlement agreements terms and conditions, such as a higher compensation amount, ensuring confidentiality, a guaranteed reference and an agreement from the employer to not make negative comments about you.

Employers

Negotiating a reasonable settlement agreement is the best way to prevent employment law claims from escalating. It saves you time and money and it reduces any financial or reputation damages to your business. With help from our employment law solicitors, you can ensure that all requirements for a legally binding settlement agreement have been satisfied and by doing so, you protect your company from further claims and prolonged legal battles.

The benefits of a settlement agreement

The best thing about a settlement agreement is that it offers benefits for both parties. In a tribunal case, there is a clear winner and a clear loser, whereas a settlement serves the best interest of both the employer and the employee. It gives both parties certainty and an ability to move on.

Quick resolution

Neither the employer nor the employee wants to have to deal with lengthy legal proceedings that can drag on for years. A quick resolution and a mutually beneficial agreement are the best way to prevent that.

Peace of mind

By signing a legal agreement, the employee benefits from having a guaranteed payoff without the risk of litigation, costs of a Solicitor or an unfavourable result in a tribunal, while the employer receives the certainty that the case will not be escalated to a tribunal saving both management time and legal costs.

Preserving your reputation

Since Employment Tribunal Proceedings are open to the public and media, for an employer, a settlement agreement means avoiding bad publicity and limiting the damage to the business’ reputation. However, reputation can be just as important for the employee. A settlement agreement can prevent an employer from making negative comments about you in public and could ensure you get a reference to help you with finding your next employment.

To ensure a favourable employment settlement agreement is reached, always seek legal advice from experienced settlement agreement solicitors near you, such as Witan Solicitors.

FAQ

Can I ask my employer for a settlement agreement?

Yes, an employee can approach their employer for a settlement agreement, if they have a case for a claim against the employer. Claims could arise at any stage of employment and it is advisable to negotiate a settlement agreement before you leave your employment.

What should I do if I have been asked by my employer to sign a settlement agreement?

You are legally required to seek legal advice before you sign a settlement agreement. Your settlement agreement solicitors will be able to give you in-depth advice once they know the details of your case.

Do I have to agree to a settlement agreement?

No. You should only sign a settlement agreement if you are satisfied with the terms and conditions and after you have had legal advice from an independent settlement agreement solicitor.

Who pays for the settlement agreement cost?

Usually, the employer will make a contribution towards the employee’s costs of obtaining independent legal advice relating to the settlement agreement. The amount of this contribution can also be negotiated as part of the settlement agreement.

What if there is a breach of the settlement agreement by the employer?

If the employer breaches the settlement agreement, the employee has the right to make a breach of contract claim through the court.

Are settlement agreements tax-free?

Whether the compensation is tax-free depends on the type of payment being by the employer. Usually, non contractual payments of up to £30,000 are tax-free, however, this excludes, notice monies, holiday entitlement and unpaid salary. Those will be taxed as per usual.