Settlement Agreement legal advice and support

Clients frequently request that we provide legal guidance on Settlement Agreements. Call us today for a no-obligation consultation.

We can assist when a Settlement Agreement is proposed and has to be negotiated, or we can provide advice and assistance when a provisional settlement has been reached. Often, the Agreement will include a provision for your employer to fund your legal fees. Settlement Agreements are typically used to resolve all employment issues on a full and final settlement basis. We can advise you on the terms and effects of such an Agreement, how it may affect you, and assist you in obtaining the best possible outcome.

If you have been offered a Settlement Agreement (formerly known as a Compromise Agreement), we can arrange for you to discuss it over the phone, by Zoom or in person in our Glasgow offices. We would need to see your employment contract and other relevant documents in order to provide you with comprehensive advice.

Even if you are pleased with the proposal and offer made to you, it is critical that you completely understand the meanings and effects of the terms before entering into the Agreement.

If you are dissatisfied with the circumstances surrounding the offer of a Settlement Agreement, we can discuss the background of the matter with you and work with you to negotiate the best possible sums and outcome for you, as well as provide guidance on your rights during what can be a difficult and unsettling period.

Why was a Settlement Agreement presented to me?

If your employment has been ended for any reason you may be requested to enter into a Settlement Agreement. A Settlement Agreement, once executed, is a legally binding contract in which you agree to waive (i.e. not pursue) any claims against your employer as a result of the ending of your employment.

Is it necessary for me to consent to the Settlement Agreement?

In a nutshell, no. You must receive independent legal advice as part of any settlement arrangement. We will discuss the Settlement Agreement with you and whether you have any claims against your employer. If required, we will negotiate the terms of the Settlement Agreement with your employer.

Who should I inform about my Settlement Agreement?

Most Settlement Agreements include a confidentiality clause that prevents the details from being disclosed to third parties. We may analyse the confidentiality agreement for you to ensure it is not harmful or overly restrictive. We can also talk about what you can and cannot tell a potential employer and whether that language should be changed in the Agreement.

Is having a Settlement Agreement the same as being made redundant?

A Settlement Agreement may be used in a redundancy scenario, such as if the employer is making an enhanced redundancy payment, however, being made redundant and obtaining a Settlement Agreement are not the same thing. A Settlement Agreement details your agreement to forgo your right to sue your employer. Redundancy is distinct in that it does not result in the loss of your job rights (unless it is tied up within a settlement agreement, in which case you would be sacrificing any rights to bring a claim, including a claim for unfair dismissal).

Will my employer still provide me with a reference?

There is no legal requirement for an employer to submit a reference, but there is frequently a reference clause in a Settlement Agreement. This clause often relates to an appendix, where a draught reference must be agreed upon. The Settlement Agreement should also define how and when the reference will be delivered. If there is no reference clause, it can be sought during the negotiation process.

What about my restrictive covenants?

Your Settlement Agreement will most likely refer to your employment contract, specifically your restrictive covenants. Some of these restrictions may continue to apply even after your termination date. We can advise you on the impact of these, their enforcement, and, if necessary, we can negotiate on your behalf to have the restrictions lifted wholly or partially.

Will I be required to pay tax on the money I receive?

This will be determined by the quantity of money received. Holiday pay, notice money, and salary will be taxed in the regular manner. The amount of compensation you get, however, will decide whether your settlement agreement is tax-free. The first £30,000 of any compensatory payment is usually tax-free if it is true compensation and not made up of other payments.

How do I accept the settlement offer?

We will analyse the employer’s proposed conditions and determine how fair or unreasonable they are as part of the legal advice you receive. Once you have received legal advice on your Settlement Agreement offer and are satisfied with the terms and consequences, we can notify your employer and assist you with the formal process of signing and accepting the Settlement Agreement.

What if I refuse to accept my settlement offer?

If you decide not to sign the Settlement Agreement after getting legal advice, you are free to pursue your employer for any potential claims you may have. If you want our assistance, we can explain how everything works. If an agreement cannot be reached, you will remain an employee; however, depending on the circumstances, your employer may consider other methods of terminating your employment. Again, once we know your background, we can assist and guide you in order to achieve the best possible outcome for you.

Do I have to get legal advice?

Yes, receiving independent legal advice is a legal necessity; otherwise, the Settlement Agreement will be unenforceable. Your solicitor will be required to sign a certificate stating that they provided you with legal advice. Complete Employment Solicitors specialise in employment law and can offer you solid, qualified guidance on your Settlement Agreement and anything else relating to your employment.

Do I have to come in for a meeting?

Not necessarily! All of our Settlement Agreement assistance is available by phone or video call. If you prefer to meet in person, we can arrange for you to come into our office.

How much will the legal fees be?

This is determined by the level of guidance desired and the amount of negotiation involved. We can simply advise on the terms and effects of the Settlement Agreement, depending on the employer’s contribution, and look to deliver such advice within the employer’s contribution. If you are willing to accept the settlement and no problems have occurred, this may be all you require. If additional work is required, fees will be discussed with you.

Speak to our employment lawyers in Glasgow today

If you are looking for employment solicitors in Glasgow or free employment law advice, look no further than our team with many years of experience. We can provide you with concise advice on employment law and the support you need to navigate the often complex world of employment law and get a claim to an employment tribunal. Whether you are facing a dispute with your employer due to an unfair reason, looking to make a claim, or are simply seeking guidance on your rights and obligations, our expert employment law solicitor can help. Call us today to make an enquiry and speak to us or fill in the form below.