What Does An Employment Law Solicitor Do In Settlement Agreement Cases?
Employment settlement agreements are an important tool in resolving disputes between employers and employees. They are also regularly used to facilitate an amicable departure between parties. These legally binding contracts can help both parties avoid lengthy and costly Employment Tribunal proceedings. However, understanding and negotiating these agreements can be complex. Employment Law Solicitors offer expert guidance to ensure the terms of a Settlement Agreement comply with employment legislation and protect your interests as an employee.
What is a Settlement Agreement?
ASettlement Agreement is a legally binding agreement between an employer and an employee that will usually end the employment relationship. In exchange for signing the agreement and agreeing not to bring a future claim in the Employment Tribunal (or continue with an existing claim), the employee usually receives a financial settlement and perhaps other benefits, such as a reference.
Settlement Agreements are often used in situations where employment is ending, whether due to redundancy, dismissal, poor performance or by mutual agreement.
What role does an Employment Law Solicitor play in a Settlement Agreement?
Solicitors play a crucial role in handling employment Settlement Agreements. Their expertise ensures that employees fully understand the terms of the agreement and their interests are protected. Here’s how they can assist:
Negotiating Terms
One of the primary roles of a Solicitor is to help negotiate the terms of the Settlement Agreement. Employers might present an initial offer, but this doesn’t mean it’s the final proposition. A Solicitor can assess whether the offer is fair and negotiate better terms, such as higher compensation or additional benefits.
Your Solicitor will use their knowledge of employment law and experience to advocate for your best interests. They can also suggest non-financial terms that might benefit you, such as reciprocal confidentiality and non-disparagement clauses, outplacement training, and the right to retain company equipment such as a laptop.
Understanding Legal Jargon
Legal documents can be full of complex jargon that’s difficult for non-lawyers to understand. Settlement Agreements are no exception. Your Solicitor will explain the terms of the agreement in plain language, ensuring you understand what you are agreeing to. This includes clarifying any legal obligations you may have after signing the agreement, such as waiving the right to bring future claims against your employer or agreeing to a restrictive covenant that limits your future employment opportunities.
Ensuring Fairness and Compliance
A key part of your legal advisor’s role is to ensure that the Settlement Agreement is fair and compliant with employment laws. This involves checking the compensation offered is adequate and that the terms of the agreement do not infringe on your existing legal rights.
Your Solicitor will also ensure the agreement complies with statutory requirements. To settle most types of claims, the agreement must be in writing, relate to a particular complaint or proceedings, and the employee must have received independent legal advice on the terms and effect of the agreement from an advisor named in the agreement.
Providing Independent Legal Advice
For a Settlement Agreement to be valid, the employee must have received independent legal advice from a qualified advisor, such as a Solicitor.
Your Solicitor will review the agreement and provide advice on whether it is in your best interests. They will explain the consequences of signing the agreement, ensuring you have all the information you need to make your decision.
Mitigating Risks
Signing a Settlement Agreement without getting legal advice from an experienced Employment Law Solicitor can expose you to significant risks. For example, you may unwittingly agree to terms that limit your future employment prospects or waive your right to pursue legitimate claims, such as sexual harassment.
An experienced Solicitor will thoroughly review the agreement and alert you to any potential issues. They can also negotiate changes to the agreement to protect your interests and ensure you get the best deal possible.
Case Study: A Typical Scenario
We often advise employees who are offered a Settlement Agreement after being subjected to a performance improvement plan. The initial offer typically includes a modest financial settlement and a basic reference.
Our team will review the agreement and employment contract and consider the procedure followed to date. We almost always identify several areas for improvement. We then negotiate with the employer to potentially secure a higher financial settlement, improved reference, and anything else our client deems necessary to put them in a favourable position. We also explain the terms of the agreement, ensuring the employee understands their rights and obligations.
By the end of the process, our clients feel confident their Settlement Agreement is fair and beneficial, providing financial security and safeguarding their future career prospects.
Concluding comments
The advice and representation of an experienced Settlement Agreement Solicitor can make a significant difference to how much you, as an employee, can get out of what is often a stressful situation. They will ensure your best interests are always protected.
If you require legal advice concerning Settlement Agreements, please call our office today on 02476 231000 or email enquiries@askewslegal.coPlease note that this article is for information purposes only and does not constitute legal advice.
