Before Entering Into A Settlement Agreement, Seek Advice From A Solicitor

By Author: Grant Saw Solicitors LLP
Total Articles: 22
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A document that offers a termination settlement in return for the employee to not claim against an employer with the employment tribunal is called a ‘settlement agreement’. This is a legally binding document where the law permits an employee to give up their rights under certain circumstances.

It is best to consult with an experienced qualified advisor or solicitor regarding employment rights. Once the employee and advisor have signed the document in the correct legal format, the agreement is finalised where the employee cannot put in a claim against the company to the employment tribunal.

If the employee has been employed for more than 4 weeks, they will have the right to a statutory termination notice, an additional notice in the terms and conditions of the employment contract. The employee will have the right to exercise protection against unfair dismissal, and there may be other legal rights specified such as unlawful discrimination.

During the notice period, the employer needs to honour the terms bound in the employment contract. The employee is entitled to their wages or salary and employment ...
... benefits until the contract is terminated.

An employee can only claim unfair dismissal if the employer did not follow the correct process and determine grounds for a definite cause for dismissal. The employer can only dismiss an employee due to proven misconduct, lack of capability, redundancy, retirement, illegal grounds to continue employment, or any other reason within the boundaries of the law. The employer must have given the employee a chance to appeal the decision, provide evidence and have a meeting accompanied by a trade union representative.

An employer may propose terms for the settlement agreement to end the employment, which can be accepted by the employee. The law, however, may not be so willing to allow an employee to give up their employment rights. If the terms of the settlement agreement are not in the correct format the employee will not be bound by the terms set in the agreement.

A settlement agreement will include an agreed-upon termination payment and determine the date and how the employment will end. The agreement will have terms such as the amount that will be taxed from the termination payment if any benefits will continue after the employment is terminated, whether the employer will provide a reference letter if any restraining arrangements will be enforced and any other terms that may be decided between the employer and employee.

The solicitor will explain everything about the settlement agreement and how it will affect the employer and what options are available that may be an alternative or better terms to the termination agreement. The choice is up to the employee whether they want to accept the settlement agreement package or try with the employer to negotiate better terms.

If both the employer and employee are not satisfied and an agreement has not been settled the employee may reject the settlement offer and exercise their employment rights. The solicitor will only provide advice to their client and act according to the instructions given by the client and advice on various options that are available to the client and how they can carry out the next process.

If the employee has grounds for a potential unfair dismissal claim, it will need to be taken to the employment tribunal. Employment tribunals do not have the formalities of civil courts, but they need to apply all legal rules and procedures. The solicitor will provide legal assistance to help the client receive the right outcome for the dismissal claim. Employers will do their best to avoid potential unfair dismissal claims as this can result in negative legal implications for the company. It is in their best interest to provide a satisfactory termination settlement agreement to the employee.

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Grant Saw Solicitors in London were established in 1851 with offices in Greenwich and Blackheath, offering a variety of legal services to individuals and businesses. They received recognition for excellence in industry standards and are proud owners of numerous awards and accreditations. Practice Management Lexcel, Conveyancing Quality Scheme (CQS), the family law accreditation and Wills and Inheritance Quality Scheme (WIQS). In 2013, they received the global ISO 9001 recognising a standard given to firms that determine high excellence. As members of Lawn, a national network of law firms, they provide advice, ideas, and resources. With their friendly and modern approach combined with traditional excellence, they provide superior services to their clients. Full details can be found at https://grantsaw.com.