01925 937070 

Settlement Agreements Legal Advice   Call 01925 937070   or Request a Call Back   We're here to help and answer all your queries and offer a free same day initial telephone consultation. We understand that it is not always convenient or even possible to speak during working hours, so we offer evening and weekend telephone consultations.  

What is a Settlement Agreement? 
Settlement Agreements (previously called Compromise Agreements) are legally-binding agreements which are often used to bring an employment relationship to an end. 
 
By entering into a settlement agreement an employee agrees to waive their rights to bring a claim or claims against their employer in an employment tribunal or court in exchange for a lump sum, known as a termination payment or compensation payment.  
 
Why Have I Been Offered a Settlement Agreement? 
Sometimes a settlement agreement can come out of the blue, in which case your first reaction might be shock. Losing your job, especially when it is unexpected, can leave you feeling confused, anxious and frustrated. Sometimes it is expected and is the culmination of a process of negotiation.  
There could be a number of reasons why your employer  
has suggested a settlement agreement. 
 
They may wish to avoid having to go through the time and expense of following formal procedures, such as consultations and selections in redundancy situations. 
The settlement agreement may be offered as an alternative to formal disciplinary proceedings (e.g. where there is a performance or conduct issue about which there is disagreement). 
 
Alternatively, there may be a amicable agreement between you and your employer to terminate the employment relationship. Perhaps you have decided to take voluntary redundancy or early retirement. A Settlement Agreement in these situations can provide a clean break with terms that are acceptable to both parties. 
Whatever the reason we can review your Settlement Agreement and provide the necessary advice. We will always agree costs prior to acting for you and will send our invoice direct to your employer.  
 
 
 
Redundancy and Termination by Mutual Consent  
 
It is sometimes the case that an employee and their employer are in agreement regarding termination of employment - one example of this would be where you have asked for or been offered voluntary redundancy and you are happy to sign a settlement agreement in return for an agreed sum. 
 
Settlement Agreements in redundancy situations are quite common nowadays and are generally straightforward. Both parties will simply want to ensure that their agreement is formalised into a contract. We will ensure that you fully understand the terms of the Settlement Agreement before signing it.  
 
Once the terms are agreed we will provide you with the 'statutory advice' which entails advising you of the effect that signing the Settlement Agreement will have on your right to bring a claim in the employment tribunal and the courts. Your employer will pay for this advice and we will invoice them direct.  
 
 
Without Prejudice  
 
Up until the time that a Settlement Agreement has been finalised it will be subject to the 'Without Prejudice' rule which means that (except in very exceptional circumstances) it cannot be produced in court in evidence as a Judge will not be allowed to look at it. 
 
However, once an employee has taken legal advice, obtained an 'Advisor's Certificate' from his or her solicitor and the Agreement has been signed and dated by both the employer and the employee it the Agreement then becomes legally binding. 
 
 
Settlement Agreement Solicitors  
 
Settlement agreements are often complex, lengthy and heavy with legal jargon, usually because they have been drafted by the employer’s solicitors with the primary purpose of protecting their client.  
 
It is therefore best to choose a lawyer who is experienced in reviewing and providing legal advice on settlement agreements to ensure that nothing in the small print is overlooked and that your interests are fully protected. 
 
Same Day Expedited Service  
 
If you need a quick turnaround, you've come to the right place!  
 
If the terms have been agreed between you and your employer we can provide the statutory advice, sign the Advisor's Certificate and email the Settlement Agreement to your employer the same day.  
 
There is no additional charge for this, but we would just ask that you do contact us before 12 noon if you require our same day service. 
 

Call us now - 01925 937070 or request a call back.  We offer: 

Straightforward advice on settlement agreements. No legal jargon. 
Timely advice. Your employer will usually set a deadline for the settlement agreement to be finalised. If the deadline is not met your employer may withdraw the offer. We can therefore offer you an early appointment to ensure that deadlines are not missed. 
Convenience of email or telephone consultations.  
Our guarantee. Whilst your employer will insert a clause into the settlement agreement that they will make a contribution towards your legal fees you will want to be sure when choosing a legal representative that you do not fall into the trap of receiving an unexpected legal bill yourself. We guarantee that this will never happen if you choose us.  
Transparency. In the unlikely event that the contribution from your employer will not cover our fees, we will (with your permission) contact your employer to seek an increase. If you do not wish us to do this or your employer refuses, then any additional fees will only be incurred by agreement with you in advance. We will only ever advise this course of action if the benefits to you outweigh the additional costs, so you will never end up out of pocket by following our advice. 

Compensation for Loss of Employment 

A settlement agreement provides for a clean break between the parties. The effect of it is that you agree not to pursue any claims in the Employment Tribunal or County Court against your employer in exchange for a lump sum (often referred to in the settlement agreement as a ‘termination payment.’) 
 
The first £30,000.00 of a termination payment can be paid free of tax and without deductions for national insurance contributions. Redundancy payments are included in the tax-free lump sum. 
 
You should also be paid all salary and other benefits due, such as accrued holiday pay and payment in lieu of notice pay (PILON) to the termination date (although these benefits are contractual as opposed to compensatory and are therefore taxable). 
 
Contact us now by email at diane@dsmlegal.co.uk or by telephone on 01925 937070. Alternatively, complete our Contact Us Form and we will call you. 

Employment References and Announcements 

It can be useful, if you are going to be looking for another job, to agree a Reference with your employer in advance. This should be incorporated into the settlement agreement as, otherwise, your employer is not legally obliged to provide one. 
 
In certain circumstances it may be appropriate to agree with your employer the wording of a formal announcement so that your colleagues can be informed about your departure in terms that you are happy with. This then needs to be attached as a schedule to the settlement agreement in the same way as an agreed Reference, to give it legal effect. 
 
Employers will sometimes pay for outplacement support as part of the settlement agreement. This service can be useful if you feel you need to brush up your cv writing or interview skills, which is often the case if you have been in the same job for a number of years. 

Settlement Agreements Compromise Agreements – Cheshire 

Our office is based in Warrington but we are easily accessible from Liverpool, Manchester, Chester, Wigan, Newton-le-Willows, St. Helens, Widnes and Runcorn (Junction 8 of the M62). 
 
However we do offer remote appointments by telephone or Zoom so it is not necessary for you to visit our office - all paperwork can be completed electronically which means that the whole process can be completed the same day. 
 
You can contact us by email at info@dsmlegal.co.uk or by telephone on 01925 937070. Alternatively, complete our Contact Us Form and we will call you. 
 
If you have been made redundant or have another employment law problem you can visit the Employment Law section of our website to find out more Employment Law at DSM Legal Solicitors

Some examples of what can go wrong if you don’t take the right advice 

Signing away all your rights.  
In one case an employee inadvertently signed away his rights to pursue his ongoing personal injury claim worth thousands of pounds.  
Taking the employer at their word. 
An employee who signed a settlement agreement on the strength of what was promised by her employer was shocked when the employer refused to honour his promise. Unfortunately for the employee the employer was well within his rights to do this as the settlement agreement contained a clause which stated that the settlement agreement constituted the entire agreement between the parties and superseded any other agreement, whether written or oral. 
Signing the settlement agreement on the assumption that that the employer won’t mind if the employee has found another job. 
In some settlement agreements there will be a clause stating that the employee warrants that by signing the settlement agreement they have not been offered or accepted another job or any form of consultancy etc at the time of signing the settlement agreement which would provide them with any form of income. The employer here was well within his rights to demand repayment of the termination payment upon discovering that the employee had signed an untrue statement due to the fact that he had already accepted another job when he signed the settlement agreement. It is likely that the employee was not aware of the clause as it is one that is often overlooked. 
A settlement agreement is a very effective way of enabling both parties to have a clean break and move on by creating certainty.  
However, it is important that you fully understand the consequences of signing the agreement as once signed you will be taken to have read, understood and agreed to its terms and it can be very difficult, if not impossible to overturn. 

Contact us today Your Local Solicitors in Warrington, Cheshire 

Call now on 01925 937070 to speak to Diane or click here to complete our Enquiry Form to find out how we can help. 
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