Settlement Agreement Compromise Agreement Solicitor Warrington
If you are looking for a settlement agreement compromise agreement solicitor look no further.
We have many years experience in drafting and advising on settlement agreements. Call for a free initial discussion to see how we can help on 01925 937070 or email Diane Massey at diane@dsmlegal.co.uk.
If you have been offered a settlement agreement or compromise agreement by your employer you will have been told by your employer that you need to take legal advice.
This is because a settlement agreement is not valid until an employee has received ‘statutory advice’ and the solicitor providing the advice has signed the adviser’s certificate.
Why has my employer asked me to sign a Settlement Agreement?
An employer will want to ensure that there will not be any claims brought against them in the future and so in exchange for a termination payment they will ask an employee to sign a Settlement Agreement.
However, a settlement agreement works both ways as it is legally-binding. This means that if either party breaches the terms of the agreement they can be sued.
If you have been offered a settlement agreement call Diane on 01925 937070 or email diane@dsmlegal.co.uk or alternatively complete our contact form on the right hand side of the page and we will call you.
Settlement Agreement Compromise Agreement
What is a settlement agreement?
A settlement agreement (sometimes called a compromise agreement) is a legally binding confidential written document.
In the settlement agreement an employee agrees to give up their rights to bring a claim in exchange for a lump sum compensation payment.
The compensation payment is sometimes referred to as a termination payment and can be paid tax free up to £30,000.00.
Your employer must also pay you your contractual entitlements (such as salary) up to and including the date of employment. These payments are subject to tax and national insurance deductions.
The settlement can sometimes include compensation for losses such as private health insurance, a company car or a bonus. If these allowances are contractual then they will be taxed.
Without Prejudice and Protected Conversations
Negotiations for the purposes of entering into a settlement are called ‘without prejudice’ discussions and cannot be referred to in Court or in a Tribunal.
In cases where there is no dispute between the parties, eg if both you and your employer have decided to part ways amicably – perhaps due to redundancy, any pre-termination settlement negotiations are ‘protected conversations’ under Section 111A of the Employment Rights Act 1996.
Provided that there is no ‘improper conduct’ anything said during a protected conversation will be inadmissible in evidence.
Free settlement agreement compromise agreement advice
We will run through the settlement agreement with you to ensure that you fully understand what you are signing and answer any queries you may have. We will then ask you to sign and settlement agreement and sign the adviser’s certificate. This service is free to you as we invoice your employer direct.
Average costs to your employer are between £350.00 – £500.00 plus VAT, depending on the complexity of the settlement agreement, however there is no charge to you for the statutory advice.
What is statutory advice?
Statutory (or ‘legal advice’ as described by your employer) means advice on ‘the terms of the settlement agreement and the effect signing it will have on your right to pursue certain claims.’
Whilst your employer will pay for the statutory advice they will not pay for us to provide advice on the merits of a claim or whether the amount offered by them is sufficient,.
However if you wish to take legal advice on taking your employer to an employment tribunal we will provide an estimate of costs.
What is a fair settlement offer?
An employer must pay you all that you are contractually or legally entitled to but there is no minimum or set amount that they must pay as a compensation payment. Much will depend upon the respective bargaining power of the parties.
If you have a good case for unfair dismissal, for example, then you are in a strong position to negotiate but on the other hand if you do not have a strong case or are ineligible to claim unfair dismissal or another type of claim, such as discrimination, then you will not be in such a strong bargaining position. If you are unsure we are happy to discuss your options.
More Questions about Settlement Agreements? See our Frequently Asked Questions
Convenient and timely advice
At DSM Legal we have been providing statutory advice on settlement agreements for over 20 years and we are usually able to help you at short notice and provide a quick turnaround if necessary.
Unlike some firms we do not charge extra to expedite your settlement agreement.
We are happy to discuss your settlement agreement at your convenience. We offer telephone consultations in the evenings and at weekends.
CALL NOW on 01925 937070, email Diane Massey at Diane@dsmlegal.co.uk or complete our contact form on the right hand side of the page and we will call you.
We provide:
Straightforward, practical advice on settlement agreements. No legal jargon.
Friendly, reliable and professional advice. We’re here to help you. We have many years experience of reviewing and advising on settlement agreements. Whilst these documents can be complex and sometimes lengthy it is important to look for what isn’t in the agreement as well as what is! We will explain in plain English the terms and nature of the settlement agreement and the effect signing it will have on your legal rights.
Quick turnaround. Your employer will usually set a deadline for the settlement agreement to be returned to them. If the deadline is not met your employer may withdraw the offer. We can therefore offer you an early appointment to ensure that deadlines are not missed .
Same day service. Sometimes you or your employer may want to conclude the settlement agreement quickly. This may be to meet a payroll deadline for example. If the terms are already agreed we can usually finalise everything the same day at no extra cost. If you require this service contact us with a copy of the settlement agreement before 12 noon.
Convenience – we can deal with you settlement agreement by email and telephone.
Peace of mind. We will keep you fully informed throughout the process and invoice your employer direct.
Fixed costs guarantee. Your employer will usually insert a clause into the settlement agreement stating that they will make a contribution to your legal fees if you sign the settlement agreement. You will want to be sure when choosing a lawyer that you do not fall into the trap of receiving an unexpected bill yourself for any shortfall. We guarantee that this will not happen with us. If you wish us to undertake any additional work for you we will seek your agreement to costs before proceeding.
Some reasons why your employer may have asked you to sign a settlement agreement
Sometimes a settlement agreement can come out of the blue, in which case your first reaction might be shock. Losing your job, especially when it is unexpected, can leave you feeling confused, anxious and frustrated.
There may be a number of reasons why your employer has suggested a settlement agreement:
a) They may wish to avoid having to go through the time and expense of following formal procedures, such as consultations and selections for redundancy or capability;
b) The settlement agreement may be offered as an alternative to formal disciplinary proceedings (e.g. where there is a performance or conduct issue about which there is disagreement).
c) There may have been a procedural defect by the employer, eg in not following their own grievance of disciplinary policy.
Mutual agreement
Alternatively, it may be that you have been in negotiations with your employer for a while. Perhaps you have been off sick and cannot or do not wish to return to work. Maybe you have been unhappy in your job for some time due to a variety of reasons, such as overwork, excessive targets, bullying or a change of management.
It may be that there is a redundancy situation and you have been offered an enhanced package in exchange for entering into a settlement agreement.
A settlement agreement can provide the clean break needed enabling you to move forward in the knowledge that both parties to the agreement are bound by a duty of confidentiality.
Contact us for free advice on your settlement agreement
If you need a Settlement Agreement call us for free advice on 01925 937070 or email Diane Massey direct.
Whatever the situation you find yourself in, it is important to choose the right lawyer. Settlement agreements are often complex and heavy with legal jargon.
It is always advisable therefore to choose a legal expert who has a lot of experience in reviewing many thousands of settlement agreements. We will ensure that nothing in the small print is overlooked and that your interests are fully protected.
Incorrect advice or advice from an inexperienced advisor can be very costly as once the settlement agreement is signed by each party and your legal advisor it will be very difficult, if not impossible, to have it set aside.
Compensation for Loss of Employment
By signing the settlement agreement in exchange for a termination payment you will be agreeing not to pursue any claims in the Employment Tribunal or County Court against your employer.
As stated above the first £30,000.00 of the termination payment can be paid free of tax and without deductions for national insurance contributions. Redundancy payments are included in the tax-free lump sum.
Employment References and Announcements
It can be useful, if you are going to be looking for another job, to agree a Reference with your employer in advance. This should be incorporated into the settlement agreement as, otherwise, your employer is not legally obliged to provide one.
In some circumstances it may be appropriate to agree with your employer the wording of a formal announcement so that your colleagues can be informed about your departure in terms that you are happy with. This then needs to be attached as a schedule to the settlement agreement in the same way as an agreed Reference, to give it legal effect.
Settlement Agreement Compromise Agreement – Cheshire
However, we are finding that most of our clients prefer the flexibility and convenience of their settlement agreement being dealt with over the telephone and by email which enables us to provide services nationwide and at a time convenient for you.
Contact us now by email at dianemassey@dsmlegal.co.uk, or by telephone on 01925 937070.
Alternatively, complete our Contact Us Form and we will call you.
If you have been made redundant or have another employment law problem you can visit the Employment Law section of our website to find out more Employment Law at DSM Legal Solicitors.
Some examples of what can go wrong if you don’t take the right advice
Signing away your rights in error.
In one case an employee inadvertently signed away his rights to pursue his ongoing personal injury claim worth thousands of pounds.
Taking the employer at their word.
An employee who signed a settlement agreement on the strength of additional promises made by her employer was shocked when the employer refused to honour his promises. Unfortunately the employer was able to rely on the settlement agreement as it contained a clause which stated that the settlement agreement constituted the entire agreement between the parties and superseded any other agreement, whether written or oral.
Signing the settlement agreement on the assumption that that the employer won’t mind if the employee has found another job.
In some settlement agreements there will be a clause stating that the employee warrants that by signing the settlement agreement they have not been offered or accepted another job.
The employer in this case demanded repayment of the termination payment because the employee had accepted another job when he had. It is likely that the employee was not aware of the clause as it is one that is often overlooked.
It is crucial that you are fully advised of the consequences of signing the settlement agreement as once signed you will be taken to have read, understood and agreed to its terms.
Call now on 01925 937070 to speak to Diane or click here to complete our Settlement Agreement Compromise Agreement Enquiry Form to find out how we can help.
Recent Testimonial:
“I would like to thank you for your prompt response which has allowed this to be sorted out quickly. I would not hesitate to contact you should I require any of your services in the future”.
Mr B of Warrington
Other Services
We are able to assist with other areas of law such as oaths, affidavits and statutory declarations, wills and lasting powers of attorney, personal injury (accident claims), medical negligence claims, criminal injury compensation claims and professional negligence claims.
