If you believe you have been treated unfairly because of who you are or a protected characteristic, and your employer has offered you a Settlement Agreement, you may be wondering whether the two are connected.

Settlement Agreements are often used to resolve workplace disputes, including those involving allegations of discrimination. Whilst an employer is entitled to offer a Settlement Agreement in these circumstances, it is important to understand why the offer has been made and whether you may have additional legal rights.

Before deciding whether to accept the agreement, you should ensure you fully understand your legal position and whether the proposed settlement represents a fair outcome.

What is discrimination?

Discrimination occurs when someone is treated unfairly because of a characteristic protected by law.

Protected characteristics include:

• Age.
• Disability.
• Gender reassignment.
• Marriage or civil partnership.
• Pregnancy and maternity.
• Race.
• Religion or belief.
• Sex.
• Sexual orientation.

The law recognises several different forms of discrimination, and each case will depend upon its own individual facts.

Can my employer offer me a Settlement Agreement if I’ve complained about discrimination?

Yes.

An employer can lawfully offer a Settlement Agreement where allegations of discrimination have been raised.

In many cases, employers use Settlement Agreements to resolve disputes without the need for lengthy internal procedures or Employment Tribunal proceedings.

However, the reason behind the offer remains important.

If discrimination has occurred, or if your employer is seeking to resolve allegations of discrimination, this may affect both your legal position and the value of any proposed settlement.

What if I think I’ve been discriminated against?

If you believe you have experienced discrimination at work, it is important to obtain specialist legal advice before signing a Settlement Agreement.

Relevant questions may include:

• What happened?
• Which protected characteristic may be involved?
• When did the events occur?
• Has your employer investigated your concerns?
• Have other employees been treated differently?
• Is there evidence to support your concerns?

The answers to these questions may have a significant impact on your legal rights and your negotiating position.

Does signing a Settlement Agreement mean I accept what happened?

No.

Signing a Settlement Agreement does not usually mean you accept that your employer acted lawfully, nor does it prevent you from believing you were treated unfairly.

Instead, it represents a negotiated agreement that brings potential legal claims to an agreed conclusion.

Many Settlement Agreements include wording that makes clear the agreement is entered into without either party admitting liability.

Can I negotiate a better Settlement Agreement?

Often, yes.

Where allegations of discrimination arise, there may be greater scope to negotiate improved terms.

Negotiations may include:

• A higher financial settlement.
• Payment of contractual benefits.
• An agreed employment reference.
• Confidentiality provisions.
• Amendments to restrictive covenants.
• Payment of legal fees.
• A mutually agreed leaving date.
• Other practical arrangements that help you move forward.

The strength of any negotiation will depend upon the facts of your case and the legal issues involved.

Should I accept the Settlement Agreement?

Before making your decision, you should carefully consider:

• Whether discrimination may have occurred.
• The strength of your legal position.
• Whether the financial package appears fair.
• Whether negotiation could improve the offer.
• Your personal and professional objectives.
• The risks and benefits of continuing with any legal process.

Once signed, a Settlement Agreement will usually prevent you from bringing most employment-related claims covered by the agreement.

That is why obtaining independent legal advice beforehand is both a legal requirement and an important safeguard.

How Pepperells can help

Our specialist Employment Solicitors regularly advise employees who have been offered Settlement Agreements following allegations of discrimination.

We’ll:

• Review your Settlement Agreement.
• Explain your legal rights.
• Assess the circumstances surrounding your discrimination concerns.
• Advise whether the proposed settlement appears reasonable.
• Identify opportunities to strengthen your negotiating position.
• Negotiate improved terms where appropriate.

Our advice is practical, confidential and focused on helping you achieve the best possible outcome.

Making an informed decision

Experiencing discrimination at work can be both professionally and personally challenging.

If you’ve been offered a Settlement Agreement, taking specialist legal advice will help you understand your options, protect your rights and make an informed decision about your future.

A carefully negotiated Settlement Agreement can often provide financial certainty whilst allowing you to move forward with confidence.

Speak to a Specialist Solicitor

If you’ve been offered a Settlement Agreement following concerns about discrimination, Pepperells can help.

Our specialist Employment Solicitors will explain your legal rights, assess the strength of your position and advise whether accepting, negotiating or declining the agreement is likely to achieve the best outcome for your circumstances.

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