Tips to do negotiation on a powerful settlement agreement?

by Hudson Mckenzie Lawyers and Solicitors who understand you

Settlement agreements were introduced in the year 2013 as an alternative for businesses and corporates to expedite employees out of their organization without the risk of legal act from the employee. They are generally used in situations of redundancy or where an employee is floundering and involve providing the employee a financial payment in exchange for exiting the company and agreeing not to go with the legal option.

For employers, settlement agreements tend to make it easier to essay workers who are no longer valuable; while for employees they give a way to get a financial settlement honest, without the need to go to an employment court. This is usually quicker, less costly and less demanding for both parties.

To be legally obligatory, a settlement agreement must meet the following 3 conditions:

· It needs to be in writing.

· It must be linked to a particular claim or claims the employee could bring against the employer.

· The employee needs to have garnered legal advice before signing to confirm they fully understand the agreement.

Being an employer, the importance in negotiating a settlement agreement should be:

· Getting the employee to abide by the settlement without a fight.

· Not paying more than you need to.

· That all probable types of claim they could bring are taken into account.

· That the employee will not take any action that disrupts your business interests e.g. bidding to take clients with them when they leave.

Being an employee, your priorities in negotiating a settlement agreement should be:

· The financial settlement is reasonable.

· Your employer agrees to give a good reference.

· If a reason is given in the agreement for your termination, that this will not battle with the employer being able to give you a good reference.

During negotiations, it is necessary to keep in mind:

· Your legal rights and how much you would be supposed to get as a settlement if you took your case to an employment tribunal.

· Employment tribunal procedures typically take a minimum of 6 months, so even if the settlement agreement offered is not as substantial as you might like, it may be worth accepting rather than spending months waiting for a resolution.

· The first £30,000 of any termination payment will normally be tax-free.

· If you are placed on “garden leave” (i.e. still technically employed and paid your salary, but not required to attend work) you will be subject to the terms of your employment contract until your employment officially ends.

Whether you are an employer wanting to employ a settlement agreement to eliminate a member of your team, or an employee who has been given a settlement agreement, getting the right legal advice and representation is indispensable.

A leading employment law attorney will be able to guarantee your interests are endangered and that all likely possibilities are considered, giving you peace of mind that the matter will be really resolved once the settlement agreement is signed.

These highly experienced settlements agreement lawyers in London can help you with all features of employment law, including exchanging settlement agreements, whether as an employer or employee.