Settlement Agreements

Settlement Agreements

If negotiated properly, a Settlement Agreement can be a very effective way to ensure that the employee is adequately compensated for the termination of their employment. It also provides an employer with the reassurance that no formal claim will or can be brought against them.

Our Employment Law Department can provide legal expert advice on the terms of any Settlement Agreement.

Employer Clients

We can agree a fixed fee for providing a Settlement Agreement that can be used in a multitude of situations.

Employee Clients

As a general rule, we will try to limit the costs of advising regarding the terms of a Settlement Agreement to the amount that your employer has agreed to contribute. We do not consider that an employee should incur any additional costs above the contribution provided. If additional assistance should however be required (in respects of negotiations) then we will limit the additional fees where possible. In most cases, however you won’t have to pay anything towards our fees, assuming you are happy with the settlement amount being offered and the advice provided by our qualified solicitor. We will even invoice your employer directly, in your name, payable by the employer, so that they pay the fees directly.

What does a Settlement Agreement usually include?

A Settlement Agreement is a contract between an employer and employee which becomes binding once it is signed by both the parties. Negotiations regarding the termination of employment are now usually concluded by way of the signing of a Settlement Agreement. This Agreement concludes the employment, details of any compensation being paid and limits the employee’s ability to make claims against the employer going forward. It also details any post contractual obligations that there may be and provides an agreement which is enforceable by either party if breached.

Such Agreements are now commonly used in redundancy situations, where there is a termination of employment or where the employee has a potential claim against the employer. As the Terms of the Agreement limit the employee’s ability to be able to take legal action going forward it is imperative that the employee takes independent legal advice before signing it. In fact, it is a requirement of the Agreement that an independent solicitor signs a certificate confirming that they have gone through the terms of the Agreement with the employee and that they have discussed the implications of the terms with them. If therefore you should receive notification of an impending redundancy, an offer of compensation from your employer, or a Settlement Agreement for any reason, then you will need to meet with a Solicitor to go through the agreement to ensure that you understand the implicationas of what you are signing. The employer will provide a contribution towards the cost of this advice (usually between £250.00 and £500.oo plus VAT) and they will also usually send payment of the fees directly so as to avoid any inconvenience to their employee.

Once signed, the Agreement will usually terminate all the potential claims that the employee may have (subject to any exceptions that there may be within the Agreement itself). It is therefore essential that legal advice is obtained.

If you should receive a Settlement Agreement then we are able to assist with advice regarding the effect of the terms being imposed. Also, if you should have any questions regarding the contents of a Settlement Agreement, a potential redundancy situation or a proposal in settlement of any claim that you may have, then we are able to assist with these as well. Our Employment Department will be more than able to assist and advise you on the best course of action in order to protect your rights.

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Kettering Assistants

Faye Burnage

Glenn Robinson’s assistant

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Lamb and Holmes Solicitors have offices in Kettering and Corby, Northamptonshire.

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