Have you been offered a settlement agreement?
Here are a few things to consider before agreeing to the terms.
Settlement agreements are generally offered to employees when they are made redundant or if the employer feels the individual is underperforming or guilty of misconduct.
It is a document that includes an offer of a sum of money in return for terminating an employee’s employment.
A settlement agreement will also outline terms of departure including a waiver of the right to bring claims against the employer.
For some people, being handed a settlement agreement can come as quite a shock. Many individuals who have been put in this position also feel pressured into signing the document and understandably find the whole experience very stressful.
If your employer has recently offered you a settlement agreement, here are some key factors to consider before signing on the dotted line.
Hold on – what exactly is a settlement agreement?
- Avoiding the cost involved in bringing an Employment Tribunal claim.
- Reducing some of the stress and anxiety involved.
- Keeping your dispute private and confidential.
- A clean break and a dignified ending to a stressful and difficult situation.
- Working together to come up with a deal that is right for all parties involved.
When you are handed a settlement agreement, you may feel pressured to sign it immediately but you should rarely do so.
It is crucial to understand the document, and carefully consider various factors including whether or not you are being offered enough money to waive your right to make claims against your employer.
Here are a few things you need to ask yourself before agreeing to anything:
Deal or no deal?
When confronted with a settlement agreement, you need to be sure that there are no future claims that you can make against your employer.
You also need to know your legal rights and speak to an employment lawyer for advice and answers to all the questions you may have. Remember, there is a three (3) month time limit if you intend to issue an unfair dismissal claim at the Employment Tribunal.
If you do not have grounds for making a claim, seek independent legal advice for employment law. A reputable law firm should help you negotiate the terms and attempt to settle the dispute out of court.
For Advice on a settlement agreement speak to a DPH Legal specialist employment solicitor. Call us or complete our Contact Us form today.
Disclaimer: The contents of this article are for information purposes only and should not be relied upon as formal legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article. Specific legal advice should be sort tailored to the individual circumstances in all cases.
