Our specialist Employment Lawyers can help negotiate your settlement agreement and regularly they significantly increase the financial settlement you could receive. We have a team of expert Solicitors who can be ready to represent you immediately. Our experience across a variety of sectors means that we are better placed to be able to understand how to best deal with your agreement to get the outcome you want.
Immediate Response
If you contact us we will direct you straight through to the most appropriate solicitor for your matter. They will talk you through what’s involved and formulate a response on your behalf and begin negotiations.
Supporting you remotely
Unlike some smaller firms we have the technology and infrastructure to support our clients in the best way possible. We are able to have consultations over video call, telephone or another alternative to suit you.
Exploring all angles
As our employment team have vast experience over all areas within employment law we will also be able to advise if there are claims for discrimination or unfair dismissal which you may or may not want to pursue. You can be assured that our solicitors will provide you with all your options and work with you to get the best possible outcome.
Cost of a settlement agreement
These vary depending on the complexity but most of the time the costs of the settlement agreement are covered by your employer.
Our senior executive team
You may want additional advice in more complex circumstances but you can talk to your solicitor who will give you transparent view should that be needed. In the cases of senior executives there are many additional elements which need to be considered such as any restrictive covenants, post termination agreements and we can also negotiate the messaging around your departure protecting your reputation.
Call one of our Experts now for free: 020 7940 4005
Email our Experts now emp@anthonygold.co.uk
How to Negotiate a Settlement Agreement?
Settlement Agreement negotiations can be done yourself or through your legal advisor. This very much depends on how comfortable you are in handling it and the circumstances of your departure. Sometimes, it is worth having your expert legal advisor negotiating on your behalf to get the best possible result, as they are experienced in doing exactly that. There are even times where the legal fees for the negotiation can be covered by your employer it may not cost you any additional funds.
If you do want to negotiate the agreement yourself, we would recommend the following:
- Be professional. It goes without saying but remember that you are looking to come to an agreement;
- Be realistic. This is for both your prospects and your ideal outcome. Each case will be different but spend some time setting out what you are asking for and why;
- Be prepared. What is it you are looking for and what is most important to you – financial compensation or perhaps other terms (e.g. waiving your notice period so you can start a new job)?
- Stand strong, but fair. A Settlement Agreement is a compromise and you may need to lower your expectations at times. That said, you will be signing away a number of your employment rights and you need to make sure you are adequately compensated for doing so. Remember, you can not be forced into signing the agreement. If you don’t feel the terms are right, say so but make sure you do professionally and with adequate reason.
Does Settlement Agreement only offer financial compensation?
No. Settlement Agreements do not solely include financial compensation. Instead of a compensation payment, an employer may agree, for example, to allow you to retain other benefits for a determined period of time including your company car or private health insurance.
Other options include negotiations over the length of time for which your confidentiality clauses or restrictive covenants are valid or placing you on garden leave or giving you pay in lieu of notice to allow you to start a new role earlier instead of giving you higher compensation.
When negotiating a Settlement Agreement it is often important to consider what, if any, benefits are important to you and make sure to let you legal advisor know that too.
What is a Reaffirmation of a Settlement Agreement
Reaffirmation is sometimes included as part of a Settlement Agreement. It is a follow up agreement that, literally, re-affirms the terms of the Settlement Agreement that you signed. This is usually used in cases where there is a longer period of time between the signing of the Settlement Agreement and the actual termination of your employment.
So, if the Settlement Agreement includes a reaffirmation agreement, it will need to be signed on or around the termination of your employment and will probably require you to have another meeting or conversation with your legal advisor. They will let you know if this is needed.
Reaffirmation does not affect the Settlement Agreement itself and should not alter or add to the terms previously agreed.
What is the Difference between Without Prejudice and a Protected Conversation
In 2013 the Government introduced the concept of Protected Conversations. They were a new way for employers and employees to discuss pre-termination settlement discussions confidentially. There are very specific rules regarding the use of protected conversations and what is acceptable to discuss. If either party engages in improper behaviour during the conversation then the negotiations can lose their confidentiality. As it is so specific, we recommend discussing how to enter into or conduct a protected conversation with an employment law specialist.
In contrast, without prejudice conversations may be used when there is a genuine dispute in existence between the parties, in this case an employer and employee. As with protected conversations, there are specific rules and sometimes labelling a conversation or correspondence as without prejudice is not enough to make it, actually, confidential. Therefore, it is always advisable to check before labelling something without prejudice.
Why is Settlement Agreement Marked Without Prejudice?
Settlement Agreements are labelled without prejudice to allow the parties to negotiate with the agreement in the knowledge that such negotiation is confidential. Therefore, a Settlement Agreement that is labelled without prejudice may not be used in any legal proceedings that may arise if an agreement is not reached. However, once the Settlement Agreement is signed, it will be an open and binding agreement between the parties, and there is usually a clause to that effect in the document.
What is a Confidentiality Clause?
The clause requires the parties to keep the existence as well as the terms of the agreement confidential. This is very common. It is often used to prevent ‘opening the floodgates’ and / or encourage other employees to negotiate for a Settlement Agreement, especially where one may not be appropriate.
There are some exceptions to this rule and it is usually on a need to know, or reasonable basis. For example, it is not uncommon for the employee to discuss the existence/terms of a Settlement Agreement with a spouse or partner and immediate family members and, of course, professional advisors which will include their legal advisor or an accountant or tax specialist.
What is the Difference Between a Settlement Agreement and a COT3?
A Settlement Agreement is an agreement whereby the employee waives their right to bring formal claims against their employer in exchange for compensation, financial or otherwise. They tend to be used whilst the employee is still employed by the employer and before any formal action or complaint has been lodged.
Whilst a COT3 agreement is also an agreement between an employer and employee, however, the agreement is facilitated through ACAS (Advisory, Conciliation and Arbitration Service) who act as the mediator between the parties and does not tend to require the advice of a legal advisor.
