How A Settlement Agreement Solicitor Can Help Employees Negotiate Quickly  

Albert Howard

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How A Settlement Agreement Solicitor Can Help Employees Negotiate Quickly  

Settlement agreements (formerly known as concession agreements) are legally enforceable contracts used to cease employment on agreed conditions that involve the worker making binding undertakings not to sue the company, in exchange for payments.

The provisions regulating settlement agreements are detailed inside the Employment Rights Act 1996, specifically section 203. For more information on the Employment Rights Act of 1996, click here. Employers and workers can try to achieve a resolution (between now and when a panel dispute has commenced) by:

  • negotiating directly or entering into the agreement, albeit the employee will require legal help to make that arrangement legally binding.
  • employing a private mediator
  • employing judicial mediation because of an employment justice where tribunal actions have been issued.

When an employment relationship comes to an end, the employer and employee may enter into a legally enforceable agreement known as a settlement agreement. This agreement protects both the employer and the employee from any further legal action that may be filed by another party (employment tribunal). It creates what is known as a “clean break” between the employee and the employer.

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After entering into a Settlement Agreement with my employer, is I still able to take them to an employment tribunal?

Even though there are certain extraordinary circumstances through which you may be able to file a claim against one’s employer upon signing a legal settlement, the basic notion (and the entire point of) a proposed settlement is that it eliminates the litigation risk being brought against either party. 

This is the case even though there are certain extraordinary cases in which you may be able to file claims against your organization after signing a One of the primary advantages of utilizing settlement agreements is that it paves the way for a fresh start in the relationship between the employer and the employee.

Why Sign a Settlement Agreement in the First Place?

Both the employee and the employer benefit from having clarity brought about by the conclusion of a dispute via the use of a settlement agreement. When an employee is required by law to sign a settlement agreement, they are also required to get independent legal counsel on the settlement agreement terms as well as the events surrounding the termination of their employment. 

This is an obligation imposed by the law. This consultation with an outside attorney must be funded by the employer. The conditions of a ‘clean break’ between an employer and an employee are defined by a settlement agreement after it is in place and has been determined to be legally legitimate. This also implies that legal action cannot be initiated against either party in the future (employment tribunal).

When might one make use of a Settlement Agreement?

Compromise agreements are now more commonly referred to as settlement agreements. The older form of the agreement was frequently employed in settings where there were employees causing problems. Settlement Agreements (Settlement agreements | NEU) are utilized far more frequently — even when an employee is leaving for reasons that are not contentious, such as redundancy. 

To put it another way, settlement agreements are utilized in the event that an employment relationship comes to an end (typically at the instigation of the employer) in order to tie the employers and workers to the conditions of that employment relationship coming to an end.

Does the existence of a Compromise Agreement imply that something unfavorable took place?

It is not true that the presence of a settlement agreement indicates that something unfavorable has taken place. Simply put, they serve the purpose of tying up loose ends when an employment relationship comes to a close in a manner that is useful to both the employer and the employee. 

Having stated that, there are several circumstances in which an employee’s employment may be terminated because the employer views the worker as a “problem employee.” A settlement agreement may be used to resolve issues regarding wrongful dismissal, redundancy, discrimination in the workplace, grievance procedures, disciplinary processes, bullying at work, sexual discrimination, misconduct, gross misconduct, and performance issues when there are disputes among employees and employers.

A settlement agreement could be connected to an employee’s bad performance, and it might come after a round of disciplinary action (but not necessarily)

What are the fees associated with entering into a Settlement Agreement?

However, the Act mandates that your employer pay for all of or a reasonable amount of the expense of independent legal counsel that you get. As an employer, this should not result in any expenses for you. Contact to set an appointment to consult with a solicitor who can help you with your settlement. 

If you choose to dispute the terms of the proposed settlement with your employer, your employment law attorney will almost certainly charge you a higher fee. They will, however, discuss any additional costs with you before you are required to commit to anything, so you shouldn’t be in for any surprises.

How long does it typically take to reach a settlement?

If the details of the contract are agreed upon by both you and your employers and the signed agreement merely has to be “signed off” by your employment solicitor, then it should not take very long for this process to be completed.

Therefore, if all of the terms of your settlement agreement have been agreed upon and nothing out of the ordinary occurs, we are often able to deliver a “same day” settlement agreement service.

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