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Settlement agreements and how much should I get?

A Settlement Agreement is a legally binding contracts which can be used to end an employment relationship on agreed terms. This is a very important document and you are advised to seek expert legal advice to obtain the best deal for you.

Your Settlement Agreement

Stephen Pinder has advised on settlement agreements since they started to be used 25 years ago. He has been involved in completing several thousand documents for his clients and understands that each case requires a review of the settlement terms and the personal circumstances of each client. As we approach the end of the furlough scheme it is very likely that more workers will be offered a settlement agreement to be completed to receive termination payments.

What is a settlement agreement?

It is a formal contract between an employer and an employee, which will provide benefits for the employee, such as notice pay, accrued holiday pay, and redundancy pay (which may be enhanced). Other benefits might include a reference, or other terms specific to the case such as about garden leave. In return for the benefits you must agree to accept the settlement terms in full and final settlement of any claim that you might want to pursue in relation to your employment or its termination, including before an Employment Tribunal.

Why do I need a solicitor?

An experienced solicitor is most likely to get you the best deal and the most money for your case. A settlement agreement will only be valid if you receive legal advice from a solicitor independent of your employer. Stephen Pinder has dealt with hundreds of employers for his clients.

How might I receive a settlement agreement?

Usually a settlement agreement is offered by an employer after a discussion about the issues leading to the agreement being proposed. A common reason is because of a redundancy situation, but they can be used to deal with any employment dispute. Using a settlement agreement can lead to a quick negotiated outcome rather than engaging in extensive internal procedures or having to start a claim before an Employment Tribunal.

What if I do not accept the offer in the settlement agreement?

Stephen Pinder has negotiated settlement terms for many of his clients, and not every offer made by an employer should be accepted. You need an experienced lawyer on your side to secure the best deal and to ensure that your legal rights are protected in the settlement agreement. It may be the best advice to reject an offer and to explore other legal options. Stephen Pinder is an experienced advocate before the Tribunal, and will be ready to give you the very best advice about the best route forward.

How much can I get from the deal?

Settlement agreements will often involve negotiation on the settlement payment and you will get advice about ensuring that the deal takes advantage of the available tax rules, including the fact that a termination payment of up to £30000 can be paid free of tax and NI. Stephen Pinder has advised on complex deals and has sometimes secured tax rebates for clients of many thousands of pounds.

Finally…...how much will it cost me to get my legal advice?

In almost every case the employer will pay your fee to cover the cost of the independent legal advice needed to conclude a binding deal. Stephen Pinder has a policy of only taking payment from the employer for every settlement agreement. He does not charge his clients anything else giving you peace of mind.

A settlement agreement will be one of the most important contracts that you will ever be asked to sign. Your employment is crucial especially at this time of uncertainty. You must obtain the best deal and you need the best advice.

Call Stephen Pinder on 0151 309 1527

  0151 309 1527

  07503 357248