Things You Wanted To Know About Settlement Agreements…

… but didn’t know who to ask.

You may have heard of Settlement Agreements under their old name of “Compromise Agreements”.

These are binding agreements between an employer and an employee where you (employee) agree to settle your potential claims: in return, the employer will generally agree to pay financial compensation. Settlement Agreements are typically associated with the ending of someone’s employment and tend to be issued shortly before or after the employment has ended (they can be used when employment is going to continue, but let’s focus on a situation where your employment is ending).

What should you do if you are unexpectedly offered one?

You may be invited for a “protected conversation” often referred to as “without prejudice” or “off the record”. That can be a nasty surprise but don’t panic – stay calm, let the employer do the talking and make notes. Nothing you agree to during the meeting will be binding until you have taken legal advice, and to be binding, the employee must get independent legal advice first.

Your other worries…

…Will probably be around the future, money, and also worrying about what legal advice is going to cost. At Wilson Browne, we’re used to people phoning with common questions where this has happened to them, so we offer a FREE 15 minute chat with an employment lawyer specialising in settlement agreements: no strings, no catches, no obligation.

Kamila Leak from our expert team, offers her advice, and tells you a little about herself, because it’s good to know you’ll be dealing with normal people…just like you.

Why are you so passionate about settlement agreements?

Very often settlement agreements are offered to employees unexpectedly and a quick answer is required as to whether they wish to enter into it or not. It can be very distressing to people who, most of the time through no fault of their own, find themselves in this situation. I enjoy helping people navigate this difficult period and assist them in better understanding what is being offered and what consequences such agreement will have on their current and potential future including their employment.

What are the 3 key things an employee should think about?

First of all, try to stay calm and do not make any emotional decisions rights away. Give yourself a little time to process what is happening. Secondly, consider the circumstances that you are in, what would be your ideal outcome and how you would like to see this situation being resolved or going forward. Lastly, contact me for legal advice as soon as you can after steps one and two.

Can you do same day sign-offs?

Nothing is impossible! There are situations where same day sign-off is possible, especially where the employee is happy with the terms of the agreement and there are no material provisions to change. Provided that the employer is responsive, we can get the settlement agreement signed on the day of the advice. However, I cannot promise that is always possible. If there are negotiations to be had or broader changes to the terms of the agreement, it may take a few days. Regardless, we always try to reach satisfactory agreement as soon as possible.

Who pays for your help with settlement agreements?

Generally, the employer who offered the settlement agreement will contribute to the employee’s legal costs, and this will be specifically provided for in the agreement. If the employer does not cover the employee’s entire legal fee, we can negotiate this on their behalf. We always strive to get the employer to cover as much of the legal costs arising out of the settlement agreements as possible. Most of the time, the full legal fee is covered by the employer.

Can you get an employee better terms?

Again, this is not something we can promise, but we will do our best to get the employee the best deal possible. We can negotiate with the employer on the employee’s behalf, or we can give specific pointers for potential amendments that could or should be made to the settlement agreement. In the latter situation the employee would negotiate on their own. However, in vast majority of cases where the employee is not satisfied with the initial settlement agreement, we manage to negotiate better terms.

What would your clients say about you?

They would say that I am diligent and caring. I always aim to provide great customer care and ensure that my clients are happy with the service and the outcome of the matter.

If you were an animal what one would you be and why?

I would definitely be a cat, fiercely independent, unfazed, creative and loves basking in the sun whenever possible.