Frequently asked questions

A settlement agreement is a legal agreement between an employer and employee, setting out the terms they have agreed. In most cases, the employer pays the employee an agreed compensation payment in return for the employee agreeing to waive his / her right to bring a claim in relation to their employment or its termination. The compensation payment from the employer is treated in full and final settlement of any of the employee’s potential claims. Such claims may otherwise include unfair dismissal, unfair selection for redundancy or discrimination to name a few.

Yes, but only after the employee has received independent legal advice from a qualified and authorised practising solicitor who is qualified to sign the Section 203 Advice Certificate confirming that they have given the necessary legal advice to make the Settlement Agreement legally binding and irrevocable.

In nearly all cases, your employer will make a reasonable contribution towards your legal fees incurred in obtaining independent legal advice and executing the Settlement Agreement. We will work within the remit of the employer contribution, except in exceptional circumstances, for example if negotiation of the agreed terms or the level of financial settlement becomes unforeseeably protracted. In most cases, your employer’s contribution will cover your legal fees due to us in full. We can also ask your employer to increase their legal fees contribution to cover any additional negotiation should this become necessary. In most cases, we will work within the original legal fees contribution offered by your employer so you can be rest assured of no surprise bill at the end.

All of our advice to clients is kept strictly confidential and all personal data is kept to a minimum and is securely stored.

We only act for employees so there is no concern over any conflict of interest with your employer.

We are able to offer a quick turn-around service in advising you and executing the terms of Settlement Agreement. However, we would always advise you to seek our advice on first reviewing the contractual terms prior to you executing the same. This would include us reviewing your Contract of Employment so as to ensure there are no hidden provisions which you will continue to be bound by. Once the Settlement Agreement is signed off by us, it becomes irrevocably binding.

We are able to offer advice and representation on the terms of the Settlement Agreement. Once you have signed the Settlement Agreement and received independent legal advice from a qualified and authorised practising solicitor, the Agreement becomes binding and irrevocable so it’s important that you fully understand and are in agreement to everything you are signing. In the event that you wish us to negotiate on the terms of settlement, we can take this off your hands and liaise with your employer or its representative on your behalf to ensure you are happy with everything prior to signing the Agreement.

This will depend on a number of factors including your length of service and the merit of any claims you may otherwise have against your employer. We will carry out a thorough analysis of your circumstances and advise you whether or not the sums are fair or not.

We can fully advise and identify for you any potential claims which you may otherwise have against your employer in the event you do not sign the Settlement Agreement and effectively, waive the same. We will also advise you on the potential value and prospects of success in any given claim and advise you on whether we consider your employer’s compensation sum to be proportionate and reasonable in relation to the same. You can then take a view as to whether you wish us to negotiate further on your behalf or if you are in agreement to signing the Settlement Agreement.

As an employee, you are protected by law from certain types of mistreatment in the workplace. This ranges widely from acts of discriminatory treatment through to your right to fair treatment in say a redundancy situation. Some claims which you may have require you to have a prerequisite length of service whereas others do not. We deal with each matter on a case by case basis and there is never a “one size fits all” approach. We will arrange a telephone consultation with you to identify and discuss your employment situation and the circumstances surrounding your proposed exit from your employment, which has led to the issuing of a proposed Settlement Agreement. We will then evaluate this information and discuss with you whether this gives rise to any potential claim which you may have against your employer. We will provide you with an approximate value of your claim and assess your prospects of succeeding in such a claim in percentage terms. We will then take such data and compare it against the proposal as set out in the draft Settlement Agreement.

Our initial investigation of whether this would be possible would depend largely on whether you obtained independent legal advice from a qualified and authorised practising Solicitor at the time you signed the Settlement Agreement. If you did, then it is highly unlikely you would be able to revoke the contractual terms, save in the instance where the legal advisor gave you negligent or improper advice. However, this would still prevent you from issuing proceedings against your employer and your remedy would instead lay with a professional dispute with your advisor or his or her firm. Once you have received independent legal advice on the terms of the Settlement Agreement, it becomes irrevocable and legally binding.

There is usually scope for negotiation of the terms of the Settlement Agreement. The important factor here is ensuring your employer is consensual to such changes. Any changes made to the Settlement Agreement must be mutually agreed between the parties, which in most cases, is you and your employer. You should not sign the Settlement Agreement until such time as you are in full agreement to its terms and content.

Yes you can. We would be more than happy to discuss your sum proposals with you and put together a robust case for an increased compensation sum. We would then discuss this proposal with your employer on your behalf. Any increase in the compensation sum would be subject to your employer’s mutual agreement.

All negotiations prior to your actual execution of the Settlement Agreement are not legally binding on you. You are free to walk away from negotiations at any point, up until the stage where you have signed the Settlement Agreement and you have received independent legal advice. We can work with you and liaise with your employer on your behalf to get you the best possible outcome.

The answer is usually no. In nearly all cases, there is provision within the terms of the Settlement Agreement to keep the terms of settlement strictly confidential. Any disclosure to a third party may result in your employer not paying you the compensation payment. They may also seek additional damages from you too.

It is always best practice, whenever possible, to keep any employment dispute confidential, whether or not you are contemplating a Settlement Agreement. You never know if the offer of a Settlement Agreement may arise with your employer and if it does, you will more than likely be expected to contractually agree to keep the circumstances leading up to your termination of employment and the terms of settlement strictly confidential. If you have already disclosed the difficult circumstances to third parties by such time this may hinder or prevent any settlement being achieved. You are always better off keeping the circumstances of your relationship with your employer confidential with this in mind.

It would be prudent to be honest with your employer concerning the social media posting which you made. You should also take immediate steps to remove the posting from your social media account.

In most cases, you can’t. You will be bound by a confidentiality clause prohibiting you from disclosing the existence or the terms of settlement with anyone. You would be best simply telling people that you left your employment amicably.

Depending on the terms of the Settlement Agreement, you may be in breach of the confidentiality provision within the Agreement. It would be prudent to contact the person whom you made the disclosure to, advising them of the confidentiality provision and asking them not to disclose it to anyone else.

In most cases, the Settlement Agreement sets out that the Compensation Payment will be paid to you within 14 to 21 working days after your employer has received the signed Settlement Agreement.

In the event your employer does not pay the Compensation Payment within the specified time scale, we will in the first instance write to your employer with a Letter before Action advising of their breach. Thereafter, if they still do not pay, you would have recourse for recovery of the debt through the civil court process.

There is usually a clause in the Settlement Agreement stating that you will return all property belonging to your employer within 7 or 14 days of signing the Agreement. It is always best practice to get such items signed for by your employer to ensure there is no dispute as to whether items have been returned or not. Company Property also extends to copies of any documents or other electronic copies you may hold.

This is a commonly asked question and in some cases, this is possible, save for any confidentiality provision which may exist. At the time of reviewing your Settlement Agreement, we will also ask to review your Contract of Employment and ascertain whether you are bound into any post termination restrictive covenants. If you are, we can make a request on your behalf to have you released effective from your Termination Date of employment, save for the confidentiality provision which will remain in full force and effect.

No. As an employee, you are statutorily and/or contractually entitled to a notice period under your Contract of Employment. You will either be expected to you’re your notice period or if it is paid in lieu, your notice period will be itemised separately in the Settlement Agreement and will be subject to PAYE deductions in the usual way.

A termination or settlement payment is an ex gratia payment you are being paid by your employer for your loss of office or employment. It is separate and additional to your contractual remuneration entitlements as set out in your Contract of Employment. A Termination or Settlement Payment may include redundancy pay.

The Termination Payment is an ex gratia payment, in lieu of your loss of office or employment. It does not form part of your remuneration entitlements under your Contract of Employment. Therefore, the first £30,000 of any Termination Payment can be paid to you tax free. It is crucial that the Settlement Agreement terms include this taxation benefit as otherwise, you may be taxed on the entire amount.

No. In nearly all cases, the draft Settlement Agreement is delivered to you by email, directly from your employer. It is therefore easier to simply forward this onto us, along with your Contract of Employment, so we can review both documents and advise you by telephone and email. This makes the process quicker and easier for all concerned.

We will issue and sign the Advisor’s Certificate, certifying that we have given you independent legal advice to you on the terms and effect of the Settlement Agreement. This will get sent over to you by email which you can forward to your employer with the electronic signed copy of the Settlement Agreement. In some cases, your employer may also want a hard copy of the signed Settlement Agreement and Advisor’s Certificate put in the post. We can organise this for you.

Yes and you will need to think very carefully before executing a Settlement Agreement. Such an Agreement has the effect of waiving everything to do with your employment, including but not limited to any employment tribunal or civil court claim in respect or connected to your employment and any personal injury claim of which you are or ought to be aware of at the time you sign the Settlement Agreement. You will need to consult with a Solicitor specialist in Personal Injury Litigation to ascertain the value of any personal injury claim, so as to ensure that the Termination or Settlement Payment is fair in comparison so as to encapsulate the personal injury claim value as well as the employment claim value.

Yes. All accrued pension rights are protected before and after signing a Settlement Agreement.

Yes. If you are bound by a non-derogatory clause in the Settlement Agreement, you cannot speak or write anything which is, or may be perceived to be, derogatory or disparaging about your employer or any of its staff or contacts.

Firstly, you should not divulge any details of the proposed Settlement Agreement to any third party, including family, friends and colleagues. Secondly, we would attempt to insert an amendment to the confidentiality clause to exclude any earlier disclosures of information pertaining to the circumstances leading up to your exit, which will be subject to your employer’s mutual consent.

There needs to be a financial benefit to you, in order to make the signing of a Settlement Agreement, effectively meaning a waiver of your legal employment rights, worthwhile and beneficial to you. We would expect to see the existence of an ex gratia payment which goes above and beyond what you would otherwise be paid under your Contract of Employment. We may be able to negotiate with your employer to obtain a higher settlement payment for you.

Item descriptionAn employer will usually agree to include a factual employment reference, which will be annexed to the Settlement Agreement. There will also be a term in the Settlement Agreement which will contractually require your employer to respond to any request for an employment reference from any bona fide prospective employer within a reasonable time scale and without undue delay. It is common place for an employer to issue a factual reference, which sets out only your dates of employment and the position held. In some cases, we may be able to negotiate a more comprehensive employment reference for you with your employer if you so require it.

In some cases, there is provision in the Settlement Agreement confirming that, at the time you sign the Agreement, you have not nor do you anticipate to imminently accept new employment elsewhere. If you have already accepted a new job offer elsewhere prior to signing the Settlement Agreement, we will need to request to remove the term from the Settlement Agreement or disclose your new job offer to your employer.

Yes. These include any statutory payments you may be entitled to such as statutory maternity pay or statutory adoption pay. In addition, your accrued pension rights cannot be waived under the terms of a Settlement Agreement.

First of all, the Settlement Agreement must be in writing. It must set out clearly the dates of your employment and the intended date of your termination of employment. It must also set out clearly what the Settlement or Termination Payment comprises of and when it is to be paid to you and how. The Agreement must also set out specifically which employment claims you are waiving and detail any actual tribunal or civil proceedings which are to be dismissed as a consequence of you signing the Settlement Agreement. You must adhere to receiving independent legal advice on the terms and effect of signing the Settlement Agreement and that advisor must complete and sign the Advisor’s Certificate confirming that they have professional indemnity insurance. Finally, you must sign the Settlement Agreement and send it back to your employer.

There is usually a repayment clause provision in the Settlement Agreement which would entitle your employer to recover from you the Termination or Settlement Payment already paid to you. Your employer may also be able to recover additional damages and interest on any sums due from you. In addition, your employer may seek to recover their legal costs from you for bringing such action in response to any breach committed by you.

No you cannot. Provided you have received independent legal advice on the terms and effect of signing the Settlement Agreement, and the Advisor’s Certificate has been duly completed and served as a result, the Settlement Agreement will be legally binding and you will not be able to revoke the Settlement Agreement and will not be able to issue proceedings against your employer.

In some cases but this largely depends on the nature of the allegations presented to you by your employer which gave rise to the disciplinary action. For example, if the allegations warrant a criminal investigation, then such claims may not be waived by your employer or the Police. However, if the allegations relate to internal performance matters arising in the workplace, these would usually be waived as part of the terms of the Settlement Agreement.

There is usually a provision in the Settlement Agreement requiring you to disclose anything which may prevent your employer from entering into a form of settlement with you prior to you signing the Settlement Agreement. Therefore, if there was any act of misconduct, which could entitle your employer to dismiss you summarily without notice or payment, then you would have been obliged to disclose it. Acts of such a serious nature may include by way of example theft or violence. If your employer were to discover later on that such an act occurred prior to you exiting your employment, it would not be a breach on your employer’s part not to pay you. However, if your employer is simply trying to avoid paying you under the terms of the Settlement Agreement and instead making untrue allegations about you, you will have a right to a fair hearing to hear such allegations and you would be entitled to see supporting evidence from your employer. Your employer would also need to prove that you knew of the misconduct before you exited your employment with them. In the absence of this, you would be entitled to enforce proceedings against your employer for their failure to pay you the Settlement Payment under the terms of the Settlement Agreement.

You must seek independent legal advice prior to signing the Settlement Agreement. We will advise you on the terms and effect of you signing the Settlement Agreement and if what is being offered to you both contractually and financially is fair and reasonable. We would ask you to also send us your Contract of Employment and details of your employer’s Redundancy Policy before we could provide you with the relevant advice. Your employer will usually pay your legal fees for obtaining legal advice.

Yes you have a freedom of choice to choose your own solicitor to act for you. You do not have to seek advice from the firm of solicitors nominated by your employer.

A Settlement Agreement can be signed as quickly as one working day and it can take several days if there are negotiations or amendments to be made to the Settlement Agreement. As we can deal with the matter instantly, helped by the electronic means of sending the documents to us, we will act as quickly as we can to achieve the best outcome for you.

As most of our communication is done via email or telephone, we can offer a national service to our clients. We can also offer out of hours service as we appreciate that availability can be limiting for some of our clients during core working hours. We therefore offer an evening and weekend service as well as our core office working hours from Monday to Friday.