If your employer is looking to downsize its workforce, you may be offered a Settlement Agreement.
This documentation can provide advantages for both your employer and you as an individual employee, however it is essential to seek specialist employment legal advice from the outset in order to ensure that your interests are fully protected.
Settlement Agreements can be used by businesses for a number of reasons, most commonly at the end of a period of employment, where they may be seeking to make redundancies. Instead of undertaking the formal redundancy process, a business may decide that it is more appropriate and efficient for them to terminate your employment through a Settlement Agreement instead.
Businesses often choose to use a Settlement Agreement due to the fact that it can terminate your employment and therefore their obligations to you as an employee quicker – this means that they can often stop paying your salary, National Insurance, pension and other contributions faster than if they were to follow the formal redundancy process. However, in return there are some benefits for you as an employee in accepting a Settlement Agreement, these include:
If you are offered a Settlement Agreement by your employer, it is essential to seek specialist legal advice from the outset. Signing a Settlement Agreement often waives your rights to any future employment related claims such as unfair or wrongful dismissal, and therefore it really is essential that you fully understand the terms and conditions of the document in order to protect your interests.
Holmes & Hills settlement agreement lawyers can assist employees by:
It is important to bear in mind that by signing a Settlement Agreement you are agreeing to waive your rights, and therefore it is critical that you fully understand the terms before you sign it. Seeking specialist legal advice at the offset is essential.
Our team of employment lawyers appreciate as an individual employee it can be a daunting time and protecting your interests is vital. We are able to review a proposed Settlement Agreement and are adept at negotiating to ensure it fully reflects your value as an individual. For specialist legal advice, please contact David Dixey, employment law specialist on 01206 593933.