Why instruct Deen and Co Solicitors
- We offer a free remote service across the whole of England
- We specialise in: Settlement Agreements, Compromise Agreements, ACAS / COT3 Agreements, Mutual Separation Agreements, Voluntary Redundancy Agreements, Employment Termination Agreements and Severance Agreements.
- We advise on: Protected / Without Prejudice Conversations and S111A Employment Rights Act 1996 Conversations.
- We negotiate with your employer on your behalf
- All work done via calls and emails
- Out of hours telephone appointments available
What is a Settlement Agreement?
A settlement agreement is a legally binding agreement which is made following the termination of your employment and/or an agreement to bring a dispute with your employer to an end, i.e. dispute concerning unpaid wages, or equal pay or dismissal or redundancy.
If your employment is being terminated, i.e. you are being made redundant or you are being dismissed, entering into a settlement agreement can be in the best interests of both the employer and the employee. The employer has security of not being sued at a later date, and the employee may be able to negotiate an enhanced redundancy package.
If you have a dispute with your employer a settlement agreement can be a good way to bring the dispute to an end.
A settlement agreement can ensure that an employee is adequately compensated without the need to bring a claim in the Employment Tribunal which can be a costly, lengthy and emotionally draining process.
Do I need to take legal advice?
There are a number of legal requirements which must be fulfilled to make a settlement agreement binding. One of the requirements is that the employee must receive independent legal advice from a legal professional.
A settlement agreement can be written in very legalistic language and can refer to statutes and regulations which you may never have heard of. It is important that you understand the effects of the agreement so that you know exactly what you are agreeing to. It is also a legal requirement that your legal advisor signs the agreement to confirm that advice has been given.
We are experienced in providing specialist, independent legal advice in relation to settlement agreements and will ensure that you receive relevant and accurate advice.
Frequently asked questions
Why do I need to sign an agreement?
Settlement agreements are used by employers to ensure that, with limited exceptions, employees who sign them cannot bring any claims against them in the future, and/or that any existing claims are settled. In return for you giving up your rights to issuing a claim, you will receive a compensation payment. If you do not sign the agreement, your employer probably will not agree to pay you compensation, or at least not as much as they are presently offering.
When will I get my money?
Your agreement should specify a time limit within which the money should be paid. Check your agreement and if still in doubt, contact us.
Will Deen & Co's costs come off the compensation payment?
No. You will receive the full payment. Usually your employer will cover the full cost of your legal advice.
Will I have to pay tax on the compensation payment?
Whether tax is payable depends on how the payment is made up. You will usually have to pay tax and national insurance on any wages and holiday pay. Generally, the first £30,000 of a payment made as compensation for loss of employment is tax-free. Redundancy payments up to £30,000 (both contractual and statutory) are usually tax-free. Payments in lieu of notice are tax free, provided that your employer doesn't have a contractual right to make a payment in lieu of notice; and, in a redundancy situation, provided that the employer does not usually make a payment in lieu of notice as a matter of course.
What about references?
There is generally no obligation on an employer to provide a reference. Any reference that is provided should be true, accurate and fair. If not, the employer may be guilty of negligent misstatement. It is possible to incorporate a reference into the agreement. If you specifically request this, and one has not already been agreed with your employer, you need to contact your legal representative to help you negotiate the content of the reference. We will, if asked, ensure the inclusion of an appropriate clause in the agreement. This may delay the time it takes to get the agreement signed.
What if my agreement states that the terms shall constitute the entire agreement between the parties?
This means that you will not be able to enforce any verbal statements given by the employer relating to the termination of your employment that do not appear in writing in the agreement — e.g. a promise to give you a reference, or extra payments.
Why Deen & Co?
We're a boutique firm specialising in employment law and have been representing and negotiating settlement agreements for over 20 years, helping to ensure our clients understand their options, their rights are defended and they receive the best outcome possible.
We are regulated by the Solicitors Regulation Authority (SRA number 560747) and listed on the Law Society.