PLEASE FEEL FREE TO CONTACT ANDREW VEITCH FOR AN INITIAL NO-OBLIGATION APPRAISAL OF YOUR EMPLOYMENT ISSUES AND ADVICE ON YOUR SETTLEMENT AGREEMENT (PREVIOUSLY KNOWN AS A COMPROMISE AGREEMENT) WHETHER YOU ARE AN EMPLOYEE OR EMPLOYER
If you have been offered a Settlement Agreement (Previously known as a Compromise Agreement) or a Redundancy Agreement by your employer you will need to obtain Independent Legal Advice before signing and entering into such a legally binding document with your employer. Andrew Veitch can normally offer immediate appointments to advise you on the terms of the settlement agreement with a view to also negotiating:-
Increased compensation payments and advice on the tax position of accepting a payment
Payment of outstanding bonus payments and holiday pay
Your employer paying the legal fees of the cost of advising on the ramifications of the Settlement Agreement
Agreed references for future employers
The extension of benefits after termination of your employment such as health insurance and gym membership
The removal of post employment termination restrictive covenants with could prevent you from obtaining a new job
The inclusion of confidentiality and non-derogatory comments clause to obtain protection from your employer making complaints or derogatory comments about you in the future
Advice on whether or not you should reject the Settlement Agreement and issue a claim for unfair or wrongful or constructive dismissal and/or sexual or disability discrimination.
Settlement agreements are legally binding agreements mainly used to settle disputes on the termination of employment. Once you have entered into a settlement/compromise agreement with your employer you will probably be prevented from successfully making a claim (either statutory or common law) against your employer in court or the Employment Tribunal. This is because settlement agreements generally contain "full and final settlement" clauses whereby you agree to accept financial compensation in return for giving up claims you may have against your employer.
Do I have to accept the offer of compensation made in the draft settlement agreement or should I reject the offer contained in the Settlement Agreement and bring a claim in the Employment Tribunal ?
Andrew Veitch can advise you on the merits of accepting the offer or making a counter offer or issuing a claim for compensation in the courts or Employment Tribunal
Are payments made under the Settlement Agreement be paid free of tax ?
In general terms the first £30,000 of the settlement payment can be paid without deductions for tax or National Insurance Contributions. However, money owed to you under your contract of employment, such as wages/salary, holiday pay and bonus pay will be subject to tax as if you were still working.
In certain circumstances the position is more complex and specialist legal advice should be obtained on the tax position.
What legal fees/solicitors costs will I have to pay?
In most cases your employer will agree to contribute towards your legal fees of having to obtain legal advice on the meaning and effect of your settlement agreement. Thus employers often have a clause inserted into the Settlement Agreement limiting their contribution towards legal costs of somewhere between £250 to £500 plus VAT). If the Settlement Agreement is acceptable to you and you enter into the Settlement Agreement this will mean that your employer is contractually bound to pay all or most of your legal costs for the advice on the contents of the Settlement Agreement. If you instruct Andrew Veitch to to try and negotiate an increased level of compensation Andrew Veitch will try and negotiate and increase in the level of your employer's contribution towards your legal costs to cover the additional work and have a clause confirming the increased contribution inserted into the settlement agreement.
Please feel free to telephone Andrew Veitch to discuss any Employment law matters or disputes or e-mail Andrew Veitch details of the advice you require or dispute you wish to be dealt with for a no obligation estimate of fees.
Tel: 020 7935 1095
Office: Guy Clapham & Co solicitors, 51-55 Weymouth Street, Marylebone, Westminster, London W1G 8NH
This blog provides basic general legal information to help people understand their legal rights, but is not a substitute for personal legal advice from a solicitor. By the very nature of a blog the information published in blog posts on this site may be out of date. Therefore this blog is subject to our following disclaimer and conditions of use: Where no personal consultation has taken place with Andrew Veitch or the partners or employees of Guy Clapham & Co under no circumstances will Andrew Veitch or the partners of Guy Clapham & Co be responsible for (1) any information contained in, omitted or received from this site, (2) any persons reliance on any such information, whether or not the information is correct, current or complete, (3) the consequences of any action you or any other person takes or fails to take, whether or not based on information provided (4)