When might a Settlement Agreement be offered?
A Settlement Agreement is most commonly offered when a term of employment is coming to an end. The employer may wish to avoid the time consuming and costly processes related to dismissal for poor performance, disciplinary matters, or redundancy by offering a Settlement Agreement voluntarily and bring the issue to a close in a timely manner.
Settlement Agreements are also used to resolve disputes between employer and employee by negotiating terms and avoiding further legal action. A Settlement Agreement might also be offered when there are large scale redundancies or dismissals taking place.
If you are an employer wishing to settle a dispute or dismiss an employee, in a manner that offers protection for your business, the specialist Settlement Agreement Solicitors at Analysis Legal will help you navigate the entire process efficiently and effectively.
Our advice is tailored to the individual circumstances, resolving the issues as smoothly as possible, while protecting your business from future disputes or litigation.
What is a good settlement offer?
From the employee’s perspective, whether the settlement offer constitutes a ‘good deal’ will depend on the precise circumstances, the individual’s feelings towards what’s happened and their prospects in the future.
Sometimes, it’s all about the money. So, a good deal is one where the maximum possible financial settlement has been negotiated. However, some employees attach greater value to things like a reference or minimising post-termination restrictions. Your minimum expectations would be your basic contractual and statutory rights, before looking at what you may be able to negotiate on top of this in exchange for accepting the wider implications of the Agreement.
It may also be that the circumstances of your case mean that you do not have a strong negotiating position, so a low offer may still be better than what you are likely to achieve in a tribunal. This is where the knowledge and skill of a good employment lawyer becomes invaluable. We’ll draw on years of experience to ensure all aspects of a settlement are considered to help you make an informed decision.
To determine whether you have a good offer on the table, you can consider the following factors:
How long you’ve been employed for.
Length of service is used to calculate your statutory redundancy entitlement or basic award in unfair dismissal claims.
The notice period you are entitled to.
Unless your employer has grounds to terminate your employment immediately, you’d normally expect to be paid for your notice period.
Discrimination.
If discrimination is a factor in the dispute, the value of your settlement should be higher.
The strength of your claim.
If an employer is confident that they could successfully defend your claim if it were to go to a tribunal, the offer is likely to be lower.