Settlement Agreements

If your employer is seeking to terminate your employment and you do not wish to take your case to the Employment Tribunal, or you wish to leave and are happy to waive any right to a claim, you may be able to negotiate an exit with a Settlement Agreement, which could give you a lump-sum payment and/or other benefits.

At Coodes, we can provide expert advice on how to approach reaching a Settlement Agreement, determining the appropriate conditions and ensuring that it is in your best interest. Our employment team provide expert, jargon-free advice to employees on the terms of their Settlement Agreements.

Securing the best deal

Our expert lawyers will help negotiate an exit of your employment on favourable terms, either through an enhanced financial package or non-financial benefits such as an agreed reference, or both. We will advise you on all your options, taking into account your personal circumstances and the background to the termination, and help you secure the best and most favourable outcome.

The Settlement Agreement process typically has four stages:

• Consultation and provision of the draft agreement – once either party has suggested a without-prejudice conversation with a view to negotiating an agreement, your employer will usually provide you with a draft agreement or the basic terms
• Review of the terms – we will discuss the terms with you, making sure that you are happy with the agreement
• Negotiation with the employer – depending on the terms, we may suggest that some amendments are made to ensure that you are fully protected and the agreement is favourable
• Completion – finalising the agreement and ensuring it is signed by both parties. At this point the agreement becomes legally binding.

Jargon-free expert advice

We recognise that termination of employment, particularly where the circumstances are disputed, can be distressing. Our employment lawyers will help you to understand all of the legal technicalities that apply to your case, explain any legal jargon and support you in deciding the best course of action. We will aim to resolve your employment issue as quickly and with as little upset to you as possible, while also ensuring that the terms of your agreement are favourable to you.

It is important to understand that a Settlement Agreement can only be determined through a qualified solicitor, and they must be mutually agreed by both the employer and the employee. Your employer cannot insist that you accept their terms, exert unfair pressure on you to do so, or fire you for not accepting a Settlement Agreement.

If you do not accept your employment terminating via an Agreement, or do not wish to accept the terms, then you are under no obligation to sign it. Rather, you can continue with your employment or look to bring a claim in the Employment Tribunal.