SETTLEMENT AGREEMENTS
Clear independent legal advice on employment settlement agreements.
If your employer has proposed a settlement agreement, it is important that you understand the terms, the payments being offered and the rights and claims you are being asked to waive.
We can review the proposed agreement, explain its terms and effect, and advise you on the implications before you decide whether to sign.
Your employer may offer to contribute towards the cost of obtaining independent legal advice. We will confirm our fee and whether any additional payment is required from you before you instruct us.
HOW WE CAN HELP
Settlement agreements can contain detailed provisions dealing with termination of employment, payments, employment claims, confidentiality and other continuing obligations.
We can review the proposed agreement, explain the terms in clear language and advise you on the legal effect of signing it.
SETTLEMENT AGREEMENT REVIEW
Review of the proposed settlement agreement and advice on its terms, effect and implications before you decide whether to sign.
WAIVER OF EMPLOYMENT CLAIMS
Advice on the claims identified in the agreement and the effect of agreeing not to pursue those claims.
INDEPENDENT LEGAL ADVICE
Independent advice on the agreement and the employment rights and claims which you are being asked to waive.
CONFIDENTIALITY AND POST-TERMINATION TERMS
Advice on confidentiality provisions, references, announcements and any continuing obligations contained in the agreement.
PAYMENTS AND NOTICE
Advice on the payments provided for in the agreement, including salary, notice pay, holiday pay and any termination payment where applicable.
NEGOTIATION AND AMENDMENTS
Where appropriate, advice on proposed amendments or negotiations concerning the terms of the settlement agreement.
WHAT IS A SETTLEMENT AGREEMENT?
A settlement agreement is a legally binding written agreement which can be used to resolve an employment dispute or agree the terms upon which employment will end.
The agreement will usually set out any payments to be made, the arrangements relating to the termination of employment and any other terms agreed between the parties.
In return, the employee will normally agree not to pursue specified employment claims against the employer.
For a settlement agreement to validly waive relevant statutory employment claims, certain legal requirements must be satisfied, including the requirement for the employee to receive advice from a relevant independent adviser.
WHY INDEPENDENT LEGAL ADVICE IS REQUIRED
By signing a settlement agreement, you will usually be agreeing not to pursue specified employment claims against your employer.
For relevant statutory employment claims to be validly waived, the employee must receive independent advice on the terms and effect of the agreement and, in particular, its effect on their ability to pursue the claims covered by it.
The independent adviser must satisfy the applicable legal requirements and have appropriate insurance or indemnity cover.
We can explain the rights and claims you are being asked to waive, the payments and other terms being offered, and any continuing obligations which will apply after the agreement is signed.
WHAT WE WILL REVIEW
We will review the proposed settlement agreement as a whole and explain the terms which are relevant to your circumstances before you decide whether to sign.
We can review the financial provisions, including salary and other sums due, notice or payment in lieu of notice, accrued holiday pay, any redundancy or termination payment, and any bonus or commission provisions where applicable.
We will explain the employment claims identified in the agreement, the effect of the proposed waiver of those claims and the rights you will be giving up by entering into the agreement.
We can also review the proposed termination date, reference provisions, confidentiality and announcement clauses, post-termination restrictions, return of company property and any other continuing obligations contained in the agreement.
We will consider the provisions dealing with tax, the employer’s contribution towards your legal fees and any indemnities or other provisions which may create continuing responsibilities after the agreement has been signed.
Where appropriate, we can advise you on points which may need clarification or amendment and discuss with you whether any terms should be raised with your employer or their representatives.
THE SETTLEMENT AGREEMENT PROCESS
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SEND US THE AGREEMENT
Send us the proposed settlement agreement and any relevant documents. We will confirm the scope of the advice, our fee and whether your employer is contributing towards your legal costs.
REVIEW AND ADVICE
We will review the agreement and discuss its terms with you, including the payments being offered, the employment claims being waived and any continuing obligations.
AMENDMENTS WHERE REQUIRED
SIGNING THE AGREEMENT
If any terms require clarification or amendment, we can advise you on the issues identified. Where separately agreed, we can also raise proposed amendments or negotiate with your employer or their representatives.
If you decide to accept the agreement after receiving our advice, the agreement can be signed and we will complete any adviser certificate or confirmation required from us.
FEES AND EMPLOYER CONTRIBUTIONS
Your employer may offer to contribute towards the cost of obtaining independent legal advice on the proposed settlement agreement.
If additional work is required, including negotiations or substantial amendments to the proposed agreement, we will explain any additional fees before undertaking that work.
Further information about our charging arrangements is available on our Fees and Transparency page.
WHY CHOOSE RAHIM AHMED SOLICITORS?
Settlement agreements can involve important decisions about your employment, financial terms and future obligations.
Our aim is to provide clear and independent legal advice, explain the terms and effect of the proposed agreement, and help you understand the rights and claims you are being asked to waive before you decide whether to sign.
Rahim Ahmed Solicitors is based in Manchester and acts for clients across England and Wales.