You have a settlement agreement handed to you and you’re told that you need to get independent legal advice. It’s all quite amicable, but this has never happened to you before and you have never even met an employment solicitor, let alone had to instruct one! You are not alone. Every day, people in your situation call us.
What is a Settlement Agreement and What Do They Do?
Settlement agreements are contracts with extra legal requirements. They essentially stop you from making a claim against your employer. It is normal for your employer to provide you with something in return.
For more information, please read: Compromise and Settlement Agreements – What’s the Difference.
That Seems Simple Enough, Why Do I Need a Solicitor?
You will need a solicitor for two main reasons:
- The law provides employees with additional protection, over and above their contract of employment, regarding their employment. Settlement agreements mean that you agree to give up that protection. It’s vital that you take advice from an expert to understand exactly what this means.
- Without advice from a solicitor, the settlement agreement isn’t valid. The law regulates settlement agreements and requires that you have independent advice on the terms and their effect, and the effect on your ability to pursue claims in the employment tribunal.
Do I Have to Pay for the Advice?
Not normally, no, because your employer makes a contribution to your legal fees to cover the required advice. Plus, we usually work within the budget you have to make sure this is enough to cover everything.
Can You Renegotiate the Deal?
Potentially. You can seek to increase the contribution to your fees, but it is not guaranteed, so it could result in some fees being directly payable by you.
Take a look at our article ‘8 Questions to Ask if You’ve Been Offered a Settlement Agreement’ for more information.
What If I Don’t Want to Sign It?
You don’t have to; although you need to make that decision knowing that you will not get what is on offer under the settlement agreement in return for you giving up your employment rights. Essentially, if you don’t sign it, the position reverts to whatever it was before the settlement agreement was offered to you.
For more guidance on this, see our article: When Shouldn’t Employees Sign a Settlement Agreement
Need More Info?
If you have further questions about settlement agreements and would like to discuss employment law in more detail, please get in touch with our employment litigation and disputes team who can answer any specific queries you may have.
