A settlement agreement is a legally enforceable agreement that may be used to terminate an employment contract on agreed terms. To sign a settlement agreement, you must first comply with the legal requirement of obtaining legal counsel with Settlement Agreement Solicitors.
What is a settlement agreement?
A settlement agreement is often referred to as a “severance” or “redundancy agreement,” and it was formerly known as a “compromise agreement.”
To summarise, a settlement agreement is a legally enforceable contract that prevents workers from suing their employer after they have received a sum of money in return for agreeing not to bring certain claims against them. And, also read about sex crimes lawyer.
An employee will no longer be able to file an employment tribunal claim or any other sort of claim that has been addressed in the agreement after a settlement has been reached.
A settlement cannot be accepted by an employee unless he or she has received independent legal counsel.
Requirements of a legally binding settlement agreement:
- A settlement agreement must be in writing
- The agreement must relate to a particular proceeding or particular complaint
- The agreement must be signed by the employee
- The employee must have received independent legal advice
- The legal adviser must be identified and insured
- The agreement must verify that the settlement agreement’s criteria have been met.
- Can I ask my employer for a settlement agreement?
You can contact your employer and discuss compensation even while you’re still employed. Keep in mind that you don’t have to wait for your employer to offer you a settlement agreement before negotiating, as you may make the first move.
The need for Legal advice
Before the employee signs the settlement agreement, he or she must get expert independent legal advice. The employment lawyer should inform the employee on any potential claims so that he or she is aware of the legal issues and the value of any possible claims.
Anyone signing a settlement agreement should consult an attorney before doing so, since lawyers will make sure your rights are protected and that you are aware and fully comprehend these rights before you give them away
These rights are divided into the following categories:
Contractual rights – The following rights are specified in your employment contract and will contain your job title, vacation time, right to be paid a wage, and so on.
Common law rights – These rights stem from the overarching legislation and cover how you are treated by your employer. These might include issues such as carelessness, defamation, and personal injury, among other things, and any claims regarding these rights must go before the High Court or County Court.
Statutory rights – The basic rights of an employee under the Employment Rights Act 1996 are as follows:
- Unfair dismissal
- The right to a statutory redundancy payment
- The right not to suffer unauthorised deductions from your wages
- The right not to be discriminated against based on certain prohibited grounds such as marital status, gender, racial origin, sexual orientation, national origin, disability, religion, trade union membership and age.
- The right to receive a minimum wage
- The right to receive maternity and paternity rights
There are times when the rights of two or more parties may overlap, and there are certain employee categories that have distinct or additional privileges, so it’s essential you get legal counsel to ensure that your rights are safeguarded and that you fully comprehend your position.
Employees who do not have the required legal counsel run the danger of giving up or sacrificing their rights when they sign a document that they don’t understand. With this in mind, the law encourages employees to seek expert legal advice to avoid being taken advantage of by unscrupulous employers.
What are the benefits of settlement agreements?
The employer’s primary benefit of accepting a settlement agreement is that the employer may be confident the employee will accept it and not pursue additional money. The advantage of a settlement agreement to the claimant is that they receive a set amount of money in return for giving up their rights.
Why do I need a solicitor?
Settlements are quite complicated, and many of them don’t even make sense.
According to the Employment Rights (Dispute Resolution) Act 1998, only a qualified lawyer, trade union official, or centre employee who is covered by an appropriate certificate of indemnity insurance may give advice.
Will I need to pay for this?
In the majority of situations, your employer will cover the cost of advice under a settlement agreement, so you won’t have to pay anything for it personally.
If you have been given a settlement agreement by your company, it is critical that you consult with an experienced Settlement Agreement Lawyer. The Settlement Agreement Lawyers will review the agreement and ensure that your rights are protected and negotiate on your behalf to get the best possible outcome.
