Legal advice helping employees, senior executives and directors, negotiate and secure the best possible terms on their settlement agreement.
alternatively call now on 0113 322 6526.
How does a settlement agreement legal advice work?
01 Complimentary consultation
Contact us today to schedule a complimentary consultation with one of our settlement agreement legal advisers. Progeny maintains a nationwide presence across the UK and are available on weekdays from 8am to 5pm. During the consultation, we will outline the initial steps of your settlement agreement process.
To arrange your consultation, please reach out to us at 0113 322 6526 or fill in the form provided below so we can assist you as best we can.
02 Review of documents
Following the initial consultation, our team of legal experts will review the details of your settlement agreement. Provide guidance on your current proposal and proceed to recommend further negotiations with your employer, if deemed necessary.
We will evaluate all factors of your case, including your employment relationship, contract termination, and any potential of an unfair dismissal. In the event your case becomes increasingly complex, we will assist you in an employment tribunal claim and support you throughout the entire process.
03 Agree the settlement
Once you are happy with the settlement terms and conditions, we will negotiate with your employers on your behalf.
Typical settlement claims include various forms of financial compensation, such as medical and life insurance, pensions, accrued holiday and bonus & commission. Additional claims can be made for notice payment and compensation for loss of office. You may be entitled to settle on one or more of these when it comes to your full and final settlement.
04 Settlement agreement completion
Settlement agreement compensation is typically paid within 7-28 days following signed approval by all parties. In most instances, your employer will also commit to contributing towards any legal fees incurred during the legal advice process. This means your employers will pay our fees directly to us, avoiding any additional cost to you.
Arrange your complimentary consultation
Fill in the form or call us now on 0113 322 6526.
We provide fast, efficient, and cost-effective settlement agreement legal advice to help you negotiate your settlement agreement. Whether you are looking to sign your settlement agreement with as little hassle as possible or aiming to maximise the settlement sum being offered, our friendly and experienced specialist lawyers will tailor their advice towards your individual needs.
Still have questions?
Below are some of our most frequently asked questions about Settlement Agreements.
Your question not answered? Give us a call on 0113 322 6526
What are settlement agreements?
A settlement agreement (formerly known as a compromise agreement) is a legally binding agreement which ends an employee’s employment on legally binding terms agreed between the employer and the employee. The employee’s employment will terminate on an agreed date, and the employer will pay a severance payment in return for the employee’s agreement not to pursue any claims in a tribunal or a court. The employee must take independent legal advice on the terms of the settlement agreement.
You can read more on the topic in our informative blog.
Do I have to sign a settlement agreement if my employer asks me to?
No. Settlement agreements are completely voluntary and their terms must be agreed by both parties. Neither the employee nor the employer can be forced to enter into one of these agreements if they don’t wish to do so.
Should I take my case to tribunal, or accept a settlement agreement?
Terms negotiated through settlement agreements can often represent a better deal than what can be achieved through fighting the case at tribunal, not just because of certainty over the financial package, but also by securing terms which a tribunal can’t award, such as a reference wording or handover arrangements. Effective negotiation of settlement agreements can remove the need for you to bring formal proceedings against your employer, which can be a time-consuming and costly route to take.
What are the requirements of a settlement agreement?
There are a number of specific legal requirements that must be met in order for a settlement agreement to be valid. It must be in writing; relate to a particular complaint; identify the independent legal adviser; state that the independent adviser has given the employee advice and is covered by a contract of insurance; and state that the statutory provisions governing settlement agreements have been met.
Why are settlement agreements used?
When an employment has come to an end, either because of redundancy or a disagreement, a settlement agreement is used to agree the terms under which the employee will leave their job. Usually, the agreement involves the employee receiving financial compensation in return for agreeing not to take the employer to court. Read more in our blog here.
What are the benefits of settlement agreements?
From an employee’s perspective, it gives you the comfort of knowing that the matter is settled, and that your employer is legally obliged to pay you the settlement sum being offered. From an employer’s viewpoint, it gives them the comfort of knowing that their employee will not take any further legal action (whether potential or otherwise) in relation to any dispute.
What is the difference between a settlement agreement and a compromise agreement?
There is no difference – they’re the same thing. The government renamed compromise agreements to settlement agreements at the end of July 2013. Sometimes people still use the old name.
Do I have to pay the legal fees?
In most cases, the employer will agree in the settlement agreement to contribute an amount towards your legal fees arising from having to obtain legal advice on the meaning and effect of the settlement agreement. This costs contribution is usually sufficient for us provide the required legal advice, meaning that you as the employee won’t have to pay anything towards our fees, assuming you are happy with the settlement amount being offered.
How are the legal fees paid?
We invoice the employer directly for payment. If the employer’s contribution towards our fees (see above) is insufficient, we will advise you, the client, at the outset and make necessary arrangements. Sometimes we can agree an increase with the employer.
What happens when I sign a settlement agreement?
By signing a settlement agreement, you are effectively giving up the chance to make a claim against your employer, usually in exchange for a settlement payment.
Do I have to take legal advice?
As an employee, you must take independent legal advice on the terms and effect of your settlement agreement before it will be considered legally binding. Discover what type of settlements we can help you with here.
Do I have to pay tax on the money I receive?
Generally speaking, any sums owed to you under your contract of employment, such as wages, holiday pay and bonus will be subject to tax in the normal way. Any redundancy payment, compensation for loss of employment or injury to feelings, or amount that can be treated as damages can be paid tax exempt up to £30,000.
When does the settlement agreement take effect?
The agreement only takes effect when you (the employee) have taken independent legal advice, signed the agreement, and we have issued a certificate to confirm the advice taken and returned this to the employer.
When will I be paid the settlement sum due under the settlement agreement?
Normally you’ll be paid the settlement sum once the settlement agreement has taken effect (as above).
