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Settlement Agreements – For Employees
If you have been offered a settlement agreement by your employer, it may have come as a surprise, or it may be something which you had anticipated over the last few weeks and months. Nevertheless, the process of accepting a settlement agreement can be frightening and confusing. At Kalra Legal Group we aim to make the settlement agreement process as smooth and swift as possible.
Settlement agreements came into effect on 29 July 2013, essentially replacing 'compromise agreements'. A settlement agreement is a legally binding contract that can be used to bring the employer-employee relationship to an end.
The settlement agreement aims to bring the employee-employer relationship to an amicable and mutually acceptable conclusion. Typically, this is done by waiving your rights to bring a variety of claims covered by the agreement to an employment tribunal or a court, in exchange for receiving some level of financial compensation in return. It is worth noting there are some rights that cannot be waived, such as the right to bring a claim for personal injury and your pension.
Where the ACAS Early Conciliation process has started or tribunal proceedings have begun, a COT3 agreement will be used instead. This is issued by ACAS and is very similar in effect to a settlement agreement. Contact us for further guidance on COT3 agreements.
What are the benefits of signing a settlement agreement?
By signing a settlement agreement you will reach a quick and efficient conclusion to your matter. In most cases, by signing a settlement agreement you are circumventing the employment tribunal process which can take over a year to gain any compensation.
Another benefit of signing a settlement agreement is you have a guaranteed amount of compensation you will receive. In the employment tribunal, the judge would decide this amount and there is no guarantee you will be successful. With a settlement agreement, the amount is negotiated between the parties and there is a clean break in the employee-employer relationship. If a settlement is reached early on it will save you legal fees, stress, and time.
For a settlement agreement to be legally binding contract, the employee must receive advice from an independent legal adviser (Solicitor or Legal Executive). Without this step in the process, the settlement agreement will not be valid and therefore will not be binding on either party.
At Kalra Legal Group, we have employment law solicitors who can provide you with this independent legal advice in person or over the phone. Our employment specialist solicitors always take their time to ensure the individual is getting the best package possible in their specific circumstances. They will go through the agreement with you and explain the rights you are waiving in exchange for signing this agreement, and they will explain your obligations under the agreement.
At Kalra Legal Group we hold the necessary indemnity insurance and certifications to provide this independent legal advice and we have great experience in negotiating increased compensation. Contact our team of employment solicitors today for further advice on your settlement agreement.
What is the cost of signing a settlement agreement?
In most settlement agreements the employer agrees to pay a contribution towards legal fees, as they recognise independent legal advice is a requirement for the agreement to be legally binding. Our fees are unlikely to exceed the legal contribution stated in the agreement.
Our fees for reviewing settlement agreement's start at £250 plus VAT. The fee will vary depending upon the complexity of your agreement but in most cases our fees will be entirely covered by your employer. If we believe our fees are likely to go over the employer's contribution to legal fees, we can request additional fees from your employer to try and avoid you paying out of your own pocket.
This will depend on your individual circumstances and the terms you wish to negotiate. The team at Kalra Legal Group have great experience in this area as we have successfully negotiated settlement agreements for clients in a variety of situations. For further guidance of how we would handle certain scenarios, check our case studies.
We try to and reduce our client's cost during the negotiation process by often requesting an increased legal contribution from the employer to cover our client's costs. We also potentially offer a "No Win No Fee" agreement in these circumstances.
Contact us for advice on negotiating settlement agreements or an exit package.
Why Kalra Legal Group?
We have prepared a blog for employee's which outlines five key reasons why you should come to Kalra Legal Group with your settlement agreement.
To book an appointment for an employment solicitor to review your settlement agreement and provide independent legal advice, contact us or call our office on 0800 8321 554.
Disclaimer: The above information should not be taken as legal advice. For legal advice on employment law matters please contact a member of our team directly.