understanding settlement agreements
TRANSCRIPT
Paul GrindleyPartner - Head of Employment
Understanding Settlement Agreements
Help! I’ve received a Settlement Agreement
What is a Settlement Agreement?
When are Settlement Agreement offered?
Why do I need an employment solicitor?
How much will I get in a Settlement Agreement?
What makes a Settlement Agreement valid?
What is a Settlement Agreement? A Settlement Agreement is a
legally binding document prepared by your employer.
It sets out all the terms, including any financial settlements, on which your employment relationship will come to an end.
When are Settlement Agreements offered?
When the employer and employee may be in dispute.When an employee is facing disciplinary proceedings.The employer decides to make an offer of financial compensation in return for the employee agreeing not to bring any claim arising from the employment.
Dispute situation
The employer asks the employee to consider accepting a sum in full and final settlement.
When are Settlement Agreements offered?
The employer may offer to enhance the employee’s redundancy entitlement. Especially given length of service and commitment to company.No fault redundancy situation - therefore employer increases payment from statutory redundancy amount.
Redundancy
The employer asks the employee to accept the sum and agree not to bring proceedings for unfair dismissal.
When are Settlement Agreements offered?
Employee may be unhappy or have received unsatisfactory outcome to a grievance.Willing to resign if compensation offered.Financial agreement covered plus obligations of confidentially, reference situation or further restrictions.
Resignation
The employer and employee agree the terms of the settlement in return for a resignation.
Why do I need an employment solicitor?
Once signed by both parties, the Settlement Agreement will be legally binding.Employees will not be able to bring any form of claim against their employer.The employee’s employment contract will be drawn to a close and should not be prejudiced as a result.
An employment solicitor negotiates the terms on behalf of the employee to ensures their best interests are protected.
Possible enhancements
Statutory payments are calculated by:Length of service - age at termination date - rate of pay
How much will I get?
Payment for accrued holidayPayment in lieu of noticeHealthcare to an agreed dateCompany car to an agreed dateRetention bonusEx-gratia paymentOutplacement servicesPayment for restrictive covenantsLegal costs
You DO NOT have to accept the Settlement Agreement
What makes a Settlement Agreement valid? Signing the document will be seen as a full and final
settlement. If all the required formalities are fulfilled the agreement
will be legally binding and cannot be revoked.
It is a legal requirement that employees receive independent legal advice from a qualified solicitor who is adequately insured.
Help! I’ve received a Settlement Agreement
Seek independent legal advice (this presentation does not constitute legal advice and is intended as a guide only).
Use a Settlement Agreement Calculator or an instant calculation of how much your pay out could be.
Settlement Agreement FAQ
Contact details
Telephone: 0113 320 5000Website: www.winstonsolicitors.co.ukemail: [email protected]: https://uk.linkedin.com/in/paul-grindley-b198b446Twitter: @EmploymentLawWSHead office: 112 Street Lane Roundhay Leeds LS8 2ALCity centre: 4 Park Place Leeds LS1 2RU