Why Choose Banner Jones Employment Law Solicitors?
The Employment Law solicitors at Banner Jones are specialists in advising on, and preparing, settlement agreements. We can help advise on:
- The tax implications of the compensation to be paid
- The inclusion of an indemnity for any tax
- The provision and content of a reference
- Restrictive covenants (whether existing or new) and confidentiality, as well as restricting comments after termination
- The types of claims that shouldn’t be included in a settlement agreement
We understand that once a decision has been made to enter in to a settlement agreement, time is of the essence and we are able to work within very short deadlines, without any compromise on our level of service to you.
Expert Employment Law Solicitors
Our expert employment law solicitors are highly experienced and will treat each case uniquely depending on your circumstances. Our employment law specialists achieve solutions through confidential settlements and are always on hand to provide support when resolving employment law problems. We have worked on many employment law cases and each individual receives the upmost care and consideration throughout the case.
How Can Our Employment Law Solicitors Help?
The Employment Law solicitors at Banner Jones are specialists in both advising on, and preparing settlement agreements.
Settlement agreements (previously known as compromise agreements) are contracts that can be entered in to by an employer and an employee to settle any employment rights or claims that the employee may have.
They are usually used to terminate an employee’s employment, and if negotiated properly, are a very useful tool for employees and employers as they enable the employer to ensure that no future claims will be made by an employee, whilst allowing an employee to receive a financial payment (very often tax free) as compensation for giving up such rights. They save the need for employment tribunal proceedings which can be expensive and time-consuming, and may attract potentially damaging publicity.
In order to be binding, there are several requirements that must be fulfilled, however, the most important is that the employee must take independent legal advice on the contents and the effect of the agreement before agreeing to enter in to it.
If you have an employment problem, often it is something else for consideration within your case, so it is always worth contacting an employment law solicitor and finding out for certain.
At Banner Jones we can advise you on your legal rights regarding employment law, where they relate to the following:
- Disciplinary and Grievance Matters
- Unfair Dismissal
- Redundancy Advice
- Discrimination in the Workplace
- Bullying and Harassment
- Ill Health and Disability Matters
- Family Friendly Rights
- Contracts of Employment and Policies
- Restrictive Covenants
- Employment Tribunals
- Settlement (Compromise) Agreements
- Protected Settlement Discussions
- Trade Union Representation
- Mediation
- Funding your Employment Law Case
What is a Settlement Agreement?
A Settlement Agreement is a legally binding contract between an employer and employee that sets out the terms for settling any claims an employee may have arising from their employment. It is usually used to end the employment relationship. It usually includes financial compensation and other agreed terms in exchange for the employee waiving their right to bring certain legal claims against the employer.
Why might I be offered a Settlement Agreement?
You may be offered a Settlement Agreement if:
- Your employer is restructuring or making redundancies.
- There’s been a dispute or grievance at work.
- Your employer wants to avoid the risk of future legal claims. It’s often used to ensure a clean break with agreed terms and follows what is known as a without prejudice discussion or a protected conversation.
Do I have to accept a Settlement Agreement?
No. You are not obliged to accept a Settlement Agreement. You should take time to consider the offer and seek independent legal advice with an Employment Law specialist before signing. Legal advice is mandatory and a Settlement Agreement won’t be binding without this. You may also be able to negotiate better terms. We can help you with this.
What should be included in a Settlement Agreement?
Typical terms include:
- A financial settlement (e.g. compensation, notice pay, holiday pay, bonuses).
- A reference for future employment.
- Confidentiality clauses.
- Restrictive convenants.
- Waiver of legal claims.
- Legal fee contribution from your employer.
Will I need legal advice before signing a Settlement Agreement?
Yes. It’s a legal requirement that you receive independent legal advice before signing a Settlement Agreement. Banner Jones Solicitors’ Employment Law specialists in Sheffield, Chesterfield and Mansfield can provide this advice and ensure you fully understand your rights and the implications of the agreement.
Will my employer pay for legal advice related to a Settlement Agreement?
In most cases, your employer will contribute towards the cost of your legal advice. This will be stated in the agreement. Banner Jones will confirm whether the contribution covers the full cost or if any additional fees apply.
Can I negotiate the terms of the Settlement Agreement?
Yes. You are entitled to negotiate the terms, including the financial settlement, reference wording, and any restrictive covenants. Our Employment Law specialists can negotiate on your behalf to ensure the best possible outcome.
How quickly can the Settlement Agreement be completed?
We understand that time is often critical. Our Employment Law specialists in Sheffield, Chesterfield and Mansfield can usually review and advise on your agreement within 24–48 hours, depending on complexity and availability.
Will the payments under the Settlement Agreement be tax-free?
Some payments under a Settlement Agreement may be tax-free, such as compensation for loss of employment up to £30,000. However, other payments like notice pay are subject to tax.
What happens if I don’t sign the Settlement Agreement?
If you choose not to sign, your employment may continue or end through other means (e.g. redundancy or dismissal). You may retain the right to bring legal claims depending on the circumstances and we can help you with any internal process or legal claim if you want to instruct us to help you with this.