Being handed a Settlement Agreement can come as a shock.

Whether you expected it or not, it’s natural to feel uncertain about what it means, what you should do next and whether you’re being treated fairly.

The good news is that receiving a Settlement Agreement does not mean you have to make an immediate decision. In almost every case, you will have time to consider the agreement, obtain independent legal advice and decide whether the terms are acceptable.

The most important thing you can do is avoid rushing into a decision before you fully understand your rights and your options.

First of all – don’t panic

Many people assume that receiving a Settlement Agreement means they have done something wrong or that they have no choice but to accept it.

That is rarely the case.

Employers use Settlement Agreements in a wide variety of circumstances, including:

• Redundancy programmes.
• Business restructures.
• Changes in management.
• Workplace disputes.
• Capability or performance concerns.
• Long-term sickness absence.
• Mutual agreements to end employment.
• To avoid lengthy Employment Tribunal proceedings.

In many cases, the offer reflects a commercial decision by your employer rather than a judgment about your performance or conduct.

Receiving a Settlement Agreement is far more common than many people realise.

Read the agreement carefully

Although you do not need to understand every legal clause immediately, it is helpful to read through the agreement before speaking to a solicitor.

As you read it, make a note of anything that concerns you, including:

• The amount of compensation being offered.
• Your proposed leaving date.
• Any deadlines for signing.
• Confidentiality clauses.
• Restrictive covenants.
• Your employment reference.
• Any bonus, commission or holiday pay.
• Anything you simply do not understand.

Making a list of questions before your appointment will help ensure that every issue important to you is discussed.

Don’t sign anything immediately

Some Settlement Agreements include relatively short deadlines.

Whilst employers are entitled to ask for a prompt response, you should never feel pressured into signing before receiving independent legal advice.

Once you have signed a Settlement Agreement, it is usually legally binding.

That is why it is so important to understand:

• What you are agreeing to.
• Which legal rights you are giving up.
• Whether the financial package is fair.
• Whether better terms could be negotiated.

Taking advice before signing is one of the most important decisions you can make.

Gather the information you’ll need

Before speaking to your solicitor, it is useful to have the following documents available:

• Your Settlement Agreement.
• Any covering letter or email from your employer.
• Your contract of employment (if available).
• Any relevant bonus or commission documentation.
• Details of any ongoing grievance or disciplinary process.
• Notes of any meetings that led to the Settlement Agreement.

Don’t worry if you cannot locate every document.

Your solicitor will advise you using the information available and explain whether any further documents are required.

Think about what matters most to you

Every employee’s priorities are different.

Before your appointment, it can be helpful to think about what outcome you would ideally like to achieve.

For example:

• Do you believe the compensation should be higher?
• Is obtaining a positive employment reference important?
• Are you concerned about restrictive covenants?
• Would you like a different leaving date?
• Are there outstanding bonuses or commission payments?
• Are you hoping to start a new job quickly?

Understanding your priorities helps your solicitor focus on the issues that matter most to you.

Can the agreement be negotiated?

Many employees assume that the figures and terms within a Settlement Agreement are fixed.

In reality, that is not always the case.

Depending upon your circumstances, it may be possible to negotiate improvements to:

• The financial settlement.
• Notice arrangements.
• Holiday pay.
• Bonus or commission payments.
• Restrictive covenants.
• Confidentiality clauses.
• The wording of your employment reference.
• Other practical terms that are important to you.

Your solicitor will advise whether negotiation is likely to achieve a better outcome and, where appropriate, negotiate directly with your employer on your behalf.

What happens next?

Once you’ve instructed Pepperells, we’ll:

• Review your Settlement Agreement.
• Explain it in clear, straightforward language.
• Answer all of your questions.
• Advise whether the offer appears fair.
• Identify any legal risks.
• Recommend whether negotiation is appropriate.
• Where instructed, negotiate with your employer on your behalf.
• Finalise the agreement once you are happy to proceed.

Our objective is to make the process as straightforward and stress-free as possible, whilst ensuring your interests remain fully protected.

You’re not expected to deal with this alone

Most people receive very few Settlement Agreements during their working lives.

It is perfectly normal to have questions and concerns.

At Pepperells, we advise employees on Settlement Agreements every day.

Whether you simply want reassurance that the agreement is fair or require robust negotiations to improve the terms being offered, our Employment Solicitors are here to guide you through every stage of the process.

Speak to a Specialist Solicitor

If you’ve just been given a Settlement Agreement, don’t feel under pressure to make an immediate decision.

Our experienced Employment Solicitors can review your agreement, explain your legal position and, where appropriate, negotiate improved terms on your behalf.

Call Us Today | Request a Call Back