If your employer gives you a
settlement agreement, thinking whether to accept can be intimidating. Here are
some key points to keep in mind.
If your employer offers you a
settlement agreement, deciding whether you should accept it can be quite
complexing.
Settlement agreements are usually
given to employees when they are being made jobless. The documents sketch the
terms of the deal: generally, an employee is provided money in return for
specific conditions, such as not highlighting a claim against their employer.
It’s a final warning before your employment is terminated.
Settlement agreements are also
given to employees if an employer thinks they are not performing good in their
job or are remorseful of misconduct. In some scenarios, an employee will be
aware that their boss is hopeless, while for others, being offered a settlement
agreement can come as a tremor.
When you accept a settlement
agreement, your employment is ended. You’ll generally receive a sum of money in
return for losing your job and few employment rights.
If you refuse to accept, however,
you may well face a disciplinary procedure or a redundancy situation.
What is a settlement agreement?
Settlement agreements brought
into action on 29 July, as part of government policies to amend the employment
laws.
They’re legally binding
agreements that lay out the full terms of a settlement between an employer and
an employee. Each settlement agreement will differ but typically the documents
include clauses that deal with: the claims to be settled; the payments you will
receive and the relevant tax issues; a confidentially/gagging clause (so you
can’t bad mouth your employer) and any agreed reference from your employer.
The latest scene
While settlement agreements are
basically a repackaging of cooperation agreements, the new thing is that when
you’re offered one, your employer is likely to have a pre-termination
negotiation with you too.
Pre-termination negotiations –
also called as a protected conversations – have come into action as a way of
compelling employers to have frank conversations with employees about
terminating their services. Anything that’s said in this discussion is
protected and cannot be used by either party against the other in an unfair
dismissal claim.
The catch is that there are
exceptions: the conversation is not protected by the new laws, in
discrimination cases, whistle blowing or other automatically unfair dismissal
claims. This means that the negotiations no longer have to remain
off-the-record if either party behaves badly during the process. So, in these
cases, what was said during the protected conversation could come out into the
open.
This is where settlement
agreement lawyers can help you in dealing with the situation.
These settlement agreement lawyers London
can help you take into account whether you’re getting a great deal and whether
you have any basis for a claim against your employer – such as discernment or
unfair dismissal. To decide whether an agreement is a fair deal, you need to
consider why you’re being offered the agreement and what privileges you are
being asked to waive as an outcome of you accepting the offer.