For many businesses, the introduction of settlement agreements has offered precious flexibility to their workforce and also protected them against the threat of potential future legal action. Likewise, for employees, it offers an opportunity to resign on their terms – with a severance payment that suits their situation.
However, there are times when employees shouldn’t have to sign a settlement agreement:
When the Employer Pressures the Employee
It can be quite a shock for employees to receive news about a proposed settlement agreement, so employers aren’t allowed to force the issue. Employees should have a minimum of 10 days to consider their options and decide whether to accept a settlement agreement.
If an employer demands that the agreement must be signed before the 10 days are up, then they could lose the confidential protection of the pre-termination discussion because they’ve put ‘undue pressure’ on their employee.
When the Employee Hasn’t Had Legal Advice
Settlement agreements can’t go ahead without legal advice. Every employee will need to speak to an employment solicitor, union representative or an individual from the Citizens Advice Bureau. These professionals will sign the agreement in order to make it official.
Normally, the employer will pay the fees involved in you seeking advice – but any legal costs that arise from detailed advice or extended negotiations may not be covered.
When There Are Potential Claims That Could Arise in the Future
Signing a settlement agreement waives the employee’s right to make a future claim against their employer in a court or employment tribunal. So, the employee needs to be sure that there are no future claims that could be made against the employer – including if they think that the employer acted improperly during the offering of the settlement.
When the Employee Doesn’t Want to
The most important thing to remember about settlement agreements is that they’re not compulsory. If an employee feels that the terms aren’t acceptable, that they’re being discriminated against or if they simply don’t want to leave, they don’t have to sign.
Of course, refusing to sign could lead to an employer instigating alternative proceedings such as disciplinary action, but this varies depending upon the individual circumstances of each case.
Read more: 8 Questions to Ask if You’ve Been Offered a Settlement Agreement
Want to Learn More About Settlement Agreements?
At Howells, our expert employment solicitors help employees across the country find solutions that suit them. If you have been offered a settlement agreement, or simply want to learn more, get in touch today.
