Settlement Agreements
Our specialist Employment Lawyers within our Employment Department can provide comprehensive guidance in relation to the legal requirements and commercial considerations where an employer wishes to make a settlement offer to an employee.
Our lawyers within in the Employment Department have extensive expertise and experience which allows us to provide our clients with the most up to date advice and practical solutions whilst negotiating commercially considered and pragmatic settlements. Our range of services includes:
- Drafting and advising on the terms of settlement agreements;
- Advising on tailored commercial settlement terms and figures;
- Drafting and negotiating bespoke amendments tailored to specific client needs and requests; and
- Identifying and valuing potential claims arising out of the circumstances leading up to the termination of employment and assisting to reduce exposure.
Mass Settlement Agreements
Reorganisations and changes in economic circumstances can lead to large scale redundancies. In such cases employers may want to offer enhanced redundancy terms which will typically be contingent on employees entering into a settlement agreement.
Our dedicated mass settlement agreement service in designed to ensure that employees receive the required independent legal advice in an efficient and cost-effective way.At Herrington Carmichael we have the expertise and experience in assisting in mass settlement agreement projects working with the company to allow it to quickly and efficiently move through the project whilst always providing outstanding independent advice to the individual employees.
What do we do that makes the project so efficient?
There are a number of ways we make this process hassle free for the employer and the employees, including:
- Smooth onboarding of the employees as clients.
- Providing a dedicated and bespoke email address for quick and easy booking of appointments.
- Providing information sheets to employees at the outset of each project in order to address any common questions that may arise.
- A large and experienced team allowing us to work within tight timescales.
- Experience in holding group meetings with employees where appropriate followed by individual advice sessions to cover any specific questions.
- Reviewing and agreeing the terms of the template settlement agreement, insofar as is possible, prior to it being given the employees.
- Agreeing a transparent fee agreement.
- The ability to hold meetings on-site as well as remotely via phone or Teams.
- Providing regular updates in respect of the agreements which have been signed.
- Providing a single point of invoicing.
How does the pricing structure work?
With a group settlement a lot will depend on the size of the group. If you contact us, we will be able to provide competitive fixed rates which are agreed at the start.
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Frequently Asked Questions
Find answers to your most pressing questions about our services and processes.
What is a settlement agreement?
A settlement agreement, previously known as a compromise agreement, is a legally binding contract between an employer and an employee that typically brings the employment relationship to an end or resolves a dispute. It outlines the terms and conditions agreed upon by both parties, often including financial compensation and other provisions.
When should an employer consider offering a settlement agreement?
Employers may consider offering a settlement agreement in situations where they wish to resolve a workplace dispute, avoid potential employment tribunal claims, or bring an end to the employment relationship on agreed terms. It can be an effective way to mutually part ways and safeguard against potential legal action.
What should be included in a settlement agreement?
A settlement agreement should include details such as the termination date, the amount of any financial compensation being offered, any post-employment restrictions or obligations, confidentiality clauses, and a clear statement of the claims being settled.
Is it necessary for the employee to receive independent legal advice?
Yes, it is a legal requirement for the employee to receive independent legal advice from a qualified solicitor before signing the settlement agreement. This ensures that the employee fully understands the terms and consequences of the agreement. As such it is usual practice for an employer to make a contribution towards the employee’s legal costs.
What are the potential risks if a settlement agreement is not handled correctly?
If a settlement agreement is not drafted properly or the employee’s rights are not protected, there is a risk that the agreement may not be legally binding. This could lead to potential claims or disputes resurfacing, resulting in additional costs and legal complications.