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Employment Settlement Agreement Solicitors

Our employment law specialists advise employees on all aspects of Settlement Agreements: whether you’re a Board director with a complex share options package, a busy manager or a first-time executive. We help you understand your legal rights and options, the process and the different outcomes you could expect.

Our specialist negotiators and solicitors are accredited by the Solicitors Regulation Authority. If you’d like us to help with your settlement agreement, please get in touch for a pro-bona consultation with one of our solicitors.

or send your enquiry to ask@dragonargent.com

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Settlement Agreement – Employee

  • A Settlement Agreement is a legally binding agreement between you and your employer. It allows you to settle the claims you may have against your employer, who in return agrees to pay you financial compensation for waiving such claims.

  • Our employment law specialists advise employees on all aspects of Settlement Agreements; whether you are a Director or Founder with a complex share options package or an employee not sure of your legal rights, contractual entitlements or whether what you are being offered is ‘fair’. We can help you understand your legal rights, your contractual rights and options, the settlement negotiating process and the different outcomes you could expect.

  • For a settlement agreement to be binding, you are required to receive your own independent legal advice from a solicitor and your employer should make a contribution to your legal fees.

Our specialist negotiators and solicitors are accredited by the Solicitors Regulation Authority. If you’d like to find out more on how we can help you with your settlement, please get in touch for a free 30-minute consultation with one of our solicitors.”

 
 

Cacy Neilson

Head of Employment and Legal Operations

 

Hear what our clients think:

“I worked with Dragon Argent on an urgent legal matter over the Christmas period 2021. Cacy was very responsive, professional and an absolute pleasure to work with, she was able to resolve my matter in a couple of days which resulted in me having peace of mind over Christmas. Thank you Cacy and Dragon Argent for your outstanding professional services, you will certainly be my first port of call for any future matters.”

Lisa Johansen

Settlement Agreement – Employer

There is a range of scenarios in which settlement agreements can be used, and our employment law specialists can discuss this with you but generally, a settlement agreement can be offered when the business wants to terminate a contract of employment on terms mutually agreed with an employee. This will allow a clean break with no opportunity for the employee to take the business to court or tribunal for the claims they are alleging.

The first £30,000 of any termination compensation (excluding contractual entitlements such as holiday pay and notice) is known as the ‘ex gratia payment’ – this sum is paid free of deductions for tax and national insurance contributions for both the employee and employer.

There are statutory requirements for a settlement agreement to be legally binding and which your business must ensure in order to enforce the agreement. These include:

  • The agreement must be in writing;

  • The agreement must relate to a particular complaint or particular proceedings;

  • The employee must have received legal advice from a independent adviser on the terms and effect of the proposed agreement and its effect on the employee’s ability to pursue the statutory rights in question before an employment tribunal;

  • The independent adviser must have a current contract of insurance, or professional indemnity insurance, covering the risk of a claim against them by the employee in respect of the advice; and

  • The agreement must state that the conditions regulating settlement agreements have been satisfied.

Our employment solicitors can help you assess the dispute your business has found itself in, evaluate and advise on the best commercial approach for your business to take and we can prepare and negotiate the settlement agreement terms on your behalf. If you’d like to find out more on how we can help, please get in touch for a free 30-minute consultation with one of our solicitors.

 

GOT A QUESTION?

Dragon Argent are an experienced employment law firm, based in the heart of central London. Reach out to our expert employment solicitors by scheduling a discovery call.

 

or send your enquiry to ask@dragonargent.com

 
 

Frequently Asked Art Law Questions

  • A Settlement Agreement is, once signed, a legally binding agreement between an employer and an employee to settle any claims that an employee may have against an employer in return for the employee receiving a payment.

    In exchange, the employer promises various payments, usually beyond what the employee is legally entitled to. Settlement agreements can be used to end an employment relationship; settle disputes whilst still employed or to settle claims already issued at the Employment Tribunal.

  • An agreement whereby you waive your rights to bring an employment claim can only be recognised in law if a solicitor or certified trade union or adviser signs it off.

    A specialist Employment solicitor will advise you on the merits of your claim and the amount of money you would be likely to receive at an Employment Tribunal.

    A specialist Employment Law solicitor will also identify any discrimination against you of which you might not be aware. For example, you might be disabled and protected by the Equality Act and therefore entitled to reasonable adjustments before any dismissal can take place. In these cases, there will not only be an unfair dismissal claim, but also an amount awarded for injury to feelings.

  • Yes, we are regulated by the Solicitors Regulation Authority and must adhere to their professional conduct standards at all times. We are regularly audited and always work in our clients best interests.

  • Lawyers represent their clients’ interests in the formation of any agreement or negotiation. We help our clients structure the rules under which they operate their businesses and engage with stakeholders - be they investors, clients, employees or service providers. We help mitigate risk, ensure compliance and protect your long term interests. Legal advice is critical for the long term health of a company and can significantly contribute to the enterprise value of a business.

  • Compensation sums – sometimes referred to as Ex gratia Payments or Redundancy Payments – can usually be paid tax free up to a maximum of £30,000. Other sums including notice monies, holiday pay, bonuses, wages and any other payments made in accordance with the contract of employment will always be subject to the normal income tax and national insurance deductions. Our tax advisors can advise you on whether the sums you are being offered are – or could be – properly classed as Compensation and thus attract the benefit of the £30,000 tax exemption.

  • If the settlement agreement is to terminate your employment, then it is common to agree a reference. We have a strong success rate of securing suitable references for our clients.

  • Threatening dismissal before any form of disciplinary process has begun, if the Settlement Agreement is rejected, also constitutes improper behaviour and will be disclosable to a Tribunal. The likelihood is that you will want to raise a grievance about this type of behaviour which, if not upheld, may result in your resigning and claiming constructive unfair dismissal.

  • The Settlement Agreement may reaffirm post-termination restrictive covenants in your contract. Our solicitor will check with your employer that they have not increased their scope. When a Settlement Agreement is offered because there has been a serious breach of contract, a solicitor should advise whether your employer can still enforce the original restrictive covenants. The value of the restrictive covenants to your employer will also help a solicitor assess the fairness of the amounts offered in your Settlement Agreement.

    • Reason for termination;

    • Termination date;

    • Whether the individual is working their notice period or if they will be paid notice in lieu;

    • Payments owed up to the termination date;

    • Bonus or commission, deferred stock options and share awards;

    • Compensation;

    • Pension;

    • Return of company property;

    • Internal and external announcements

    • Confidentiality of the settlement agreement and terms within

    • Job reference

    • Contribution to legal fees