You and I know the answer therefore this article could be incredibly short as we can’t talk about it.
But what I can talk about, but you mustn’t, after entering into one is Settlement Agreements.
If you’re of a certain age, you may be frowning thinking “Aren’t they called Compromise Agreements?”
You’d be right too. They used to be called just that, but they underwent a name change in 2013, but, to all intents and purposes they are the same in principle.
What they do is provide a quicker closure to an employment dispute where an employer typically offers a settlement amount to end an employment relationship.
With an agreed reference, the common inclusion of confidentiality clauses, settlement agreements can bring a dispute to an end, though they do legal oversight with term checking and from an employee viewpoint an assessment of whether the sum offered is reasonable given the circumstances.
Tyto Law, and Oliver, have vast experience in this field and should be a first port of call for a confidential discussion about your need for closure with an employment relationship.
Typically settlement agreements of up to £30,000 are tax free. There are certain criteria though that need to be looked at like your salary, length of time in that workplace to determine an appropriate amount you should receive.
If you’re in dispute with your employer, or are absent long term with stress-related illness, it can be difficult for you to think objectively about your situation. We’ve experienced numerous cases like yours and it’s often daunting for someone who is not being objective to approach an employer to end a relationship.
SHOULD I GO TO A TRIBUNAL?
Many think the door to a tribunal would be a better entry point, but it’s always worth someone independently assessing what the outcome could be at an employment tribunal versus a settlement sum.
A settlement agreement can often be a much less stressful way of leaving a job than paying Tribunal costs with no guarantee that you’ll win.
Coupled with an agreed reference, settlement agreements leave both sides – employer and employee – able to part on neutral terms, without a public fight in a Tribunal.
WHERE WE COME IN
A settlement agreement is not legally binding either until both parties have signed and this is where Tyto Law comes in – to check the terms of the agreement and advise you independently. It is a legal obligation to have a settlement agreement legally assessed and, along with advice about your employment rights, and the likelihood of agreeing on a sum, we can check out and approve or disprove the legal terms.
If you’d like any more confidential advice about employment disputes, settlement agreements and their terms, contact me today.