Home Blog Page 10

Dartford Settlement Agreement Solicitors

0

Dartford Employment Law Solicitors

Being offered a settlement agreement can be stressful. Have you got a good deal, can you negotiate for more, and is there anything else you’ve missed or should be worried about?

It’s not uncommon to ask these questions. We know, because every year we help employees from across the UK with settlement agreements.

You’re in safe hands

We are a nationally recognised team of employment solicitors. We are recommended by the Legal 500 and our solicitors are members of the Employment Law Association.

Richard a solicitor in our settlement agreement team and he looks after people in and around Dartford.

Fast settlement agreement sign-off service

We understand that some clients are happy with the deal and want to solicitor to quickly sign-off the settlement agreement with as little fuss and cost as possible. If that’s you, we can normally provide very quick turnarounds and limit our costs to the level your employer contributes. That means you pay nothing and we send our invoice straight to your employer.

But we always check the agreement and will advise you let you know what the agreement means and the effect it will have on you. And if there’s a problem or risk with the way its drafted we will advise you.

A better deal

If you’re unsure whether the offer is enough and would like help negotiating, an employment solicitor will talk this through with you. This service sometimes entails additional costs and funding options, including a no-win-no fee arrangement (where no fee is charged unless there is a financial uplift in your deal) can be considered if you wish.

 

 

 


IMPORTANT: The contents of this page are general guidance only and should not therefore be regarded as constituting legal or other advice or recommendations. You are free to instruct any solicitor you wish.

Employers: Ask an Expert

0

Q: I’ve got an employee who’s been with us for 2 years but in the last year his performance has dropped off to an unsatisfactory level.  Can I offer him a settlement agreement to leave without having to go through a long process to deal with the performance problem?

Paul Reeves, partner in the employment team at Stephenson Harwood LLP answers…

The short answer is yes you can, but there are a few points to note.  Offering a settlement agreement (formerly called compromise agreements) will require you giving this individual something more than his/her contract provides (e.g. a settlement sum, the first £30,000 of a genuine settlement sum may be paid free of tax).  Do you really want to be paying a sum to an under-performing employee?  The advantage of a settlement agreement is that in return for a payment the employee waives their employment rights.

The alternative is to follow the procedure as set out in the ACAS Code of Practice (which is the minimum benchmark) when dealing with performance issues.  By following this process you should avoid the need to offer a settlement agreement or pay this employee off.

If you want to offer a settlement agreement, then note the following.  Since July 2013, employers now have the option to hold pre-termination discussions with employees about them potentially leaving.  A pre-termination discussion is essentially an “off the record” conversation between the employer and employee.  The law now provides that if you meet the conditions of a pre-termination discussion, then anything said during those discussions cannot be referred to any subsequent litigation (i.e. if an agreement is not reached and a claim is brought by the ex-employee).  Pre-termination discussions are an alternative to the long established “without prejudice” (WP) discussions.  

The key difference between the two is that for a genuine WP conversation there must be a pre-existing dispute between the parties. A genuine WP conversation will be treated as off the record conversation and therefore not admissible in any subsequent litigation. Either a WP or pre termination discussion enables the parties to have a frank discussion with a view to agreeing exit terms.  It is important to note that the protection afforded through pre-termination discussions is useful if the individual only has an unfair dismissal claim.  If there is potential for claims for discrimination or whistleblowing (even if linked to unfair dismissal) then you will need to use the WP route and not a pre-termination discussion.

If you use the pre-termination discussion route, then the offer must be in writing and the individual must be given time to consider it.  This “cooling off” period must be for at least 10 days.

The employee must obtain independent advice (e.g. from a solicitor) before entering into any settlement agreement – there is no obligation for the employer to pay for this advice though many do, up to a limit of a few hundred pounds only.  The settlement agreement until it is signed must be marked “without prejudice, subject to contract”.

If the employee does not wish to enter into a pre-termination discussion, or after having reviewed the proposed offer decides not to proceed, then the employer needs to commence the performance management process in line with either their own policy or as a minimum the ACAS Code.

A settlement agreement is essentially a way of avoiding the time and expense of following the performance process.  Best practice to engage with the employee who has not been performing, sooner rather than later to allow them adequate time to improve.  Failing to follow the correct procedure and dismissing the employee as a result of his/her performance may lead to an unfair dismissal claim.  If the employment tribunal finds that the employer has dismissed the employee for an unlawful reason and has not followed a fair process, it may uplift any award it makes by up to 25%, subject to any statutory cap on awards.  So following a fair process is key.

It is important to note that the performance management process does not take as long as employers may fear and is unlikely to have lasted for the 12 months the employer states the employee has been under-performing in this scenario.  If having been warned an employee’s performance does not improve within a reasonable timescale, then the employer can lawfully terminate the employee’s employment.  This would avoid the need for a settlement agreement and paying the individual a sum for entering the agreement (i.e. paying the individual for poor performance).

It is worth noting that employees whose employment started on or after 6 April 2012 are now required to accrue 2 years’ service before they can bring a claim for unfair dismissal.  Those employed before that date only need one year’s service to be eligible to bring a claim unfair dismissal.  

Answer given by Solicitor Paul Reeves on 2 October 2013.


IMPORTANT: The contents of this page are for guidance only and do not constitute legal advice. You should consult a solicitor without delay if you require legal advice on a particular employment matter.

Can I raise a grievance about being offered a settlement agreement?

0

Ask an Expert: Grievances and Settlement Agreements

The short answer to the question is yes, you can, because all employees have the right to raise a grievance at any point during their employment. However, how much use it will be depends on the events leading up to the discussion about the offer of a settlement agreement.

An employer may ask you if you are prepared to have a discussion on a “without prejudice” basis. In principle that means the content of the conversation shall remain confidential as between you and your employer and cannot be disclosed or form part of your evidence in any subsequent legal proceedings.

However there is one pre-condition to that confidentiality and that is that the discussion must concern your employer’s attempts to settle an existing dispute between you. Typically the offer of a “without prejudice” conversation may come after a disciplinary allegation about your conduct or performance has been raised with you. In those circumstances if you agree to have a “without prejudice” conversation you cannot mention in any later grievance what you spoke about, including the fact that a settlement agreement was offered.

For example you may feel that you have been unfairly selected for redundancy. You cannot present a grievance about the fact that your employer may have offered to have a discussion on a “without prejudice” basis (to which you agreed) with a view to paying you an enhanced redundancy package in exchange for you waiving your rights to bring a claim under a settlement agreement. However that does not mean that you cannot raise or continue with a grievance about the fact that you feel the selection was unfair.

Employers often believe they are covered by the cloak of confidentiality when they are not. They are only protected where the discussion is a genuine attempt to settle an existing dispute.  Therefore you must have been given some notice about the nature of the dispute prior to the without prejudice discussion and it cannot be used simply as an opportunity to criticise or abuse you.

You can also use the contents of a conversation involving the offer a settlement agreement if the words “without prejudice” have not actually been said or stated anywhere or you did not agree to have a conversation on that basis.

An employer asking to have an “off the record” conversation with you is not the same as a “without prejudice” conversation and does not carry the same or indeed any protection for the employer.

Where your employer enters into a discussion about settlement that is not protected but it reveals that there is a detrimental view held about you, your conduct or performance that would make your continued employment impossible or untenable, you may have grounds to resign and claim unfair dismissal. However you should always obtain prompt legal advice before terminating your employment in this way.

 The Government are proposing to place pre-termination negotiations on a statutory footing later this year.

Written by Rebecca Kershaw, Solicitor at Barlow Robbins LLP solicitors

Note: Answer provided before introduction of legislation inserting section 111A into the Employment Rights Act 1996
IMPORTANT: The contents of this page are for guidance only and do not constitute legal advice. You should consult a solicitor without delay if you require legal advice on a particular employment matter.

Hampshire

0

Gosport

Havant

Portsmouth

Southampton

Waterlooville

Winchester

Ask an Expert: Accept the offer or you’ll be dismissed!

0

My employer has told me I will be dismissed if I don’t accept the settlement agreement. I feel under pressure to sign, what should I do?

Jemma Pugh, solicitor at Lester Aldridge LLP answers…

This will largely depend on the circumstances and the facts surrounding your particular situation.

If your employer has a reason to dismiss you – for example because you have committed gross misconduct, then provided they follow a fair procedure, it may mean that your dismissal would be fair. This may mean that you are more inclined to accept the package offered in order to avoid being dismissed.

However, if your employer has no such reason and is intending to dismiss you simply because you do not accept the settlement agreement, then this may be grounds upon which to bring a claim of unfair dismissal against your employer at an Employment Tribunal (assuming that you have the required qualifying period that normally applies for making such a claim, which is one year for employees employed before 6 April 2012 but 2 years for those whose employment began on or after 6 April 2012).

In order for a dismissal to be fair, an employer must have a potentially fair reason for the dismissal, which can be either capability, conduct, redundancy, breach of statutory duty and the “catch-all” category of “some other substantial reason”. A refusal to sign a settlement agreement does not fall under any of those categories and therefore your employer would not be able to show that there was a fair reason to dismiss you. In addition to having a fair reason, an employer must also follow a fair procedure in dismissing an employee. For everything other than gross misconduct, this would generally mean that you are given a series of warnings prior to being dismissed.

Furthermore, the general rule that settlement discussions are “off the record” and therefore not admissible as evidence in a Tribunal may not apply in this situation. Your employer’s conduct could arguably amount to ‘improper conduct’, particularly if this is before any disciplinary process has begun. It seems as though your employer is putting undue pressure on you to sign the agreement. This means that anything said or done in settlement discussions will only be inadmissible as evidence in claims to the extent that the Tribunal considers it just.

You will need to balance accepting the settlement agreement against any claims you may be able to make to an Employment Tribunal. It is important to factor in to this decision the time involved in making a claim, as well as the cost – remember that there is now a fee payable for making a claim to the Tribunal, unless you qualify for an exemption.  

It may also be worth exploring whether your employer would be prepared to negotiate on the amount offered under the settlement agreement so that you are able to agree an exit package which you would be willing to accept.

You should consult a specialist employment lawyer for further advice. They will be able to assist you with any negotiations or advise on any potential claim for unfair dismissal (in the event that you are dismissed). It is also a legal requirement to obtain advice from an independent solicitor prior to signing a settlement agreement.


IMPORTANT: The contents of this page are for guidance only and do not constitute legal advice. You should consult a solicitor without delay if you require legal advice on a particular employment matter.

Newport Settlement Agreement Solicitors

0

Settlement Agreement Solicitors – Newport.

If you’re in the Newport area and have been offered a settlement agreement, we can provide expert specialist advice and help. Go for a fast sign off service (if you’re happy with the deal) – solicitor fees are paid by your employer. 

Once signed, a settlement agreement is legally binding. That’s why it’s crucial to have specialist advice from a settlement agreement solicitor in the UK.

What are settlement agreements?

A settlement agreement is a formal agreement between an employer and an employee. The documents used to be called compromise agreements, and they’re covered in the Employment Rights Act 1996. Once the agreement is signed:

  • The employee receives a sum of money
  • The employee agrees not to bring certain legal claims against the employer.

For the settlement agreement to be legally binding it has to comply in certain ways, for example, it must be in writing, and the employee must have received legal advice from a solicitor. That’s crucial because you need to know if the deal is fair and be certain that you don’t want to bring a claim against your employer.  

We can help with Newport based settlement agreements.

We that losing your job or having a dispute at work can feel overwhelming and stressful. However, we have long term experience of helping people reach the best outcomes possible with their settlement agreements. Getting the right advice means we can ensure you are getting the best deal (and negotiate on your behalf if you’re not) and allow you to sign your settlement agreement and move on.

IMPORTANT: The contents of this page are general guidance only and should not therefore be regarded as constituting legal or other advice or recommendations. You are free to instruct any solicitor you wish.

Croydon – Settlement Agreement Solicitors

0

Settlement Agreements – Croydon.

If you’re in the Croydon area and have been offered a settlement agreement, we can provide expert specialist advice and help. We offer a fast sign off service (if you’re happy with the deal) or we can negotiate your behalf to improve it. Costs are paid by your employer. 

Once signed, a settlement agreement is legally binding. That’s why it’s crucial to have specialist advice from a settlement agreement solicitor in the UK.

What are settlement agreements?

A settlement agreement is a formal agreement between an employer and an employee. The documents used to be called compromise agreements, and they’re covered in the Employment Rights Act 1996. Once the agreement is signed:

  • The employee receives a sum of money
  • The employee agrees not to bring certain legal claims against the employer.

For the settlement agreement to be legally binding it has to comply in certain ways, for example, it must be in writing, and the employee must have received legal advice from a solicitor. That’s crucial because you need to know if the deal is fair and be certain that you don’t want to bring a claim against your employer.  

We can help with Croydon based settlement agreements.

We that losing your job or having a dispute at work can feel overwhelming and stressful. However, we have long term experience of helping people reach the best outcomes possible with their settlement agreements. Getting the right advice means we can ensure you are getting the best deal (and negotiate on your behalf if you’re not) and allow you to sign your settlement agreement and move on.

IMPORTANT: The contents of this page are general guidance only and should not therefore be regarded as constituting legal or other advice or recommendations. You are free to instruct any solicitor you wish.

Employers: Ask an Expert about Settlements

0

By Joanne O’Connell

Q: The ACAS guidance suggests an employer should give an employee 10 calendar days to consider the settlement agreement. What risks would we have if we only gave the employee one day to accept our offer?

Julie Taylor, associate solicitor at Gardner Leader solicitors, answers…

The ACAS guidance expands on the provisions of the statutory ACAS Code of Practice on Settlement Agreements (under s111A of the Employment Rights Act) and sets out points for good practice. The guidance does not have to be referred to by an employment tribunal in deciding a case and failure to follow the recommendations of the Code of Practice itself will not automatically lead to a claim. However, whether an employer complied with the Code will be taken into account by the tribunal.

The main risk associated with ignoring the suggested 10 calendar days is whether it could be considered ‘Improper behaviour,’ and therefore could allow the discussion to be used as evidence before a tribunal in an unfair dismissal claim. This is a significant risk because generally, under the legislation, discussions surrounding the settlement agreement will be confidential and not be admissible as evidence before a tribunal for an unfair dismissal claim. However, if there is any “improper behaviour,” then anything said in pre-termination negotiations regarding the settlement agreement could be presented as evidence.

Equally, if there is an existing employment dispute before the settlement agreement discussions commence and there is any “unambiguous impropriety” (such as fraud, blackmail, violence or discrimination) then the established common law “without prejudice” principle will not apply (this principle is the rule that discussions and offers made to resolve disputes cannot generally be disclosed to courts or tribunal).

While it will, of course, be for a tribunal to determine and clarify what amounts to improper behaviour in each case, the ACAS Code of Practice gives some examples of what would constitute improper behaviour. This includes putting undue pressure on a party and the Code specifically refers to a failure to give reasonable time for the offer to be considered as an example of undue pressure.

Therefore, if you insist that an agreement is reached within one day, you run the risk that the employee could argue this is undue pressure and rely on the conversation as evidence to support an unfair dismissal claim.

From a practical perspective, an employee is likely to feel very pressured and stressed by such a short-time frame and this in itself is likely to have a detrimental impact on agreeing the terms. The employee is more likely to resist and look to negotiate a higher settlement pay out. Furthermore, as the agreement is only legally binding if the employee has independent legal advice, it is likely that the employee will want to take advice before confirming their acceptance of a settlement agreement offer. They may not be able to talk to their adviser within this timescale, which could also hamper a swift and amicable resolution.

 If such a short time frame is being considered by an employer, I would suggest that the reason for requiring this is considered and balanced against the risks highlighted above. In most cases it will be appropriate to adhere to around the 10 calendar days’ recommendation and this should assist with reaching an amicable resolution.

More questions and answers

Back to Home     Find a Solicitor

Answer dated 3 September 2014.


IMPORTANT: The contents of this page are for guidance only and do not constitute legal advice. You should consult a solicitor without delay if you require legal advice on a particular employment matter.

Derbyshire

0

Buxton   I   Chesterfield   I   Derby

We don’t have a specialist employment solicitor listed here but one of our panel employment solicitors can help.

Why use our Panel of Employment Solicitors?

  • Advice wherever you are in the UK.
  • No need for a meeting – settlement agreement advice by email and phone.
  • Cost Promise for peace of mind.
  • Qualified Solicitors with specialist employment law expertise

Call to arrange a free and no obligation chat with one of our panel employment solicitors on freephone 0800 0639 900