Same Day Settlement Agreement Solicitor in London/Manchester/Birmingham
Last Updated: May, 2024. Originally Published: June 29, 2016
I’m a specialist Settlement Agreement Solicitor with over 30 years’ experience. I offer a ‘fixed fee’ service which is the amount your employer has agreed to contribute.
Your employer pays me at the end.
You can read my standard Settlement Agreement terms here. The fixed fee service covers advice on the Agreement and reasonable negotiations.
If you’re a long away apart or still in a dispute I can refer you to colleagues or you might use The Law Society’s ‘Find a Solicitor’ search engine:
https://solicitors.lawsociety.org.uk/
Over the years I’ve advised thousands of employees on Settlement Agreements. I get to the point very quickly, focusing on what you want to achieve without damaging relations with your employer or making things more stressful.
This note should help you understand the basics.
What do I need from you?
All I need is:
A copy of your Settlement Agreement
Your mobile number
The HR manager’s name and email
Your contract of employment (if relevant)
A brief summary of any claims you want to discuss
I don’t need a copy of your passport/driving licence because I don’t hold any client money.
Pour employer will pay any monies due to you direct. I don’t give pension or financial advice.
Try me first on my mobile 07527 261926 or leave a message at: 0207 247 7190.
What is a Settlement Agreement?
Settlement Agreements are a contract designed to bring employment to an end amicably.
Once you have signed the Agreement you can’t bring any claims to an Employment Tribunal. That’s why the Law states that employees must have independent advice from a solicitor and a certificate confirming this.
The terms are mainly common sense: for an enhanced payment you give up the right to bring claims. There are protections for your employer: property, unfair competition, reputations, confidentiality etc. and for you: a reference, announcements, confidentiality etc.
The big issues
Settlement Agreements tend to be attractive on what I call the ‘pain to gain’ test.
You don’t have to sign but you can stand to incur legal costs, lose tax efficiency, but if you may have a claim, I can discuss this with you and give you a broad indication of what it is and whether it is worth pursuing.
But do think of the ‘big picture’ and whether you want the hassle of a legal case in your life with all that entails. Employment law disputes are different to many others because there’s a lot more at stake than just money.
Things to think about are:
- Where do you want to be next?
- What will you take home under the Agreement or by way of a dispute?
- If you want to discuss claims what facts do you have are you relying on (dates/events/documents etc.) Typical claims are unfair dismissal, discrimination… whistleblowing
- How can you prove what happened?
- How long will it take you to find another job? If you can do this fairly quickly there really is no point in a legal claim because compensation will be low
Remember most legal claims need 2 years’ continuous employment (not discrimination or whistleblowing) and events need to be recent.
Advantages of a Settlement Agreement
A Settlement Agreement is normally preferable to a dispute. Here are some of the advantages:
- No legal fees - if you use a lawyer at tribunal these will be deducted from any outcome by anything up to 33%
- Tax efficiency - compensation payments (non-contractual) can be paid tax-free up to £30,000
- Reputation – the Agreement will normally include an agreed reference so you can apply for jobs confidently. Settlements can also include protection from negative comments by either party and even an agreed announcement
- Looking for work - a dispute may get in the way of new job opportunities
- Litigation risk - there’s a risk you might lose all or part of your claim at tribunal on a point of evidence or law
- Stress - tribunals are famously stressful …it can take over a year to get to a tribunal hearing!
What’s in a Settlement Agreement?
Settlement Agreements normally have clauses covering the following:
- Notice- your employer must give you notice to end the contract. The amount is either confirmed in your contract or fixed by law (no less than 1 week’s pay for each year worked to a maximum of 12) Notice can either be worked, served on ‘garden leave’ or paid in lieu (go straightaway, paid ‘upfront’)
- Termination payment- the amount of any compensation payment, tax efficiency and the date for payment. Sometimes this is referred to as ‘ex gratia’
- Employee warranties- promises made by the employee such as being a ‘good leaver’ and that you don’t have a job to go
- Confidentiality/Client Protection- the employer may want to protect its business interests. These have to be reasonable and normally no more than 6 months after leaving and are often already in the employee’s contract of employment
- Benefits - healthcare, pension contributions, car allowance etc. Sometimes these can be continued for a period of the end date.
- Handover and practical steps- returning property, passwords, deleting employer work from home computers
- Tax indemnity- your employer won’t guarantee the tax-free status of any payment so if HMRC take a different view, you’ll have to pay the outstanding tax. Generally, it’s straightforward: any compensation (not pay) is tax free to £30,000. Employees sometimes ask for amounts over £30,000 to be paid direct into their pension.
Do I have to accept the Settlement Agreement?
You don’t have to sign the document but the key issue to consider is the net benefit of not signing compared with bringing a legal claim.
Call 07527 261 926 or 0207 247 7190 or complete my online contact form.
Is the amount I’ve been offered fair?
Your Agreement will probably refer to the basic entitlements at tribunal.
These are:
Basic Award/Redundancy payment
This is calculated by reference to a week’s pay which is fixed at an upper amount. As of April 24
- £700 for each year worked under 41
- £1050 for each year worked over 41
This award is capped at 20 weeks’ pay. The Basic Award isn’t taxable and is often included in the compensation payment.
If you are being paid a Redundancy payment this is the same amount as the Basic Award so you wouldn’t get this twice.
Notice
Notice is either set out in your contract of employment or a statutory minimum of 1 week’s pay for each year worked up to a maximum of 12 weeks. Tax and NI will be deducted as HMRC treat this as pay. There are no exceptions to this rule.
Compensation/Unfair Dismissal
This is mainly made of lost earnings, capped at 1 year’s pay, upper limit of £115,115. To negotiate on this, you’ll need good evidence of any difficulties you will face finding a job in a similar role (eg: emails from recruiters, the Press or medical evidence). Give some thought to the role you work in. A secretary for example could probably find a job in 1 month but someone in a rare position might face bigger hurdles, as would someone who has been made very ill by the employer.
The Compensatory award can be reduced to reflect the fact that you would have been dismissed in any event for example if you have been treated unfairly but there is a large scale redundancy shortly afterwards. Compensation might only be to the date others were made redundant.
Discrimination and ‘whistleblowing’ cases
In these cases, there is no upper limit on compensation for lost earnings and you can also claim compensation for ‘injury to feelings.’
In respect of claims presented on or after 6 April 2024, the “Vento bands” are:
- A lower band of £1,200 to £11,700 for less serious cases
Typically a one-off/isolated instance of discrimination
- A middle band of £11,700 to £35,200 for cases that do not merit an award in the upper-band
More serious cases that do not merit an award in the highest band.
- An upper band of £35,200 to £58,700 for the most serious cases;
Only exceptional cases are capable of exceeding £58,700.
This would normally involve sustained and malicious discriminatory behaviour.
If you are thinking of asserting ‘injury to feelings’ I’ll need evidence (normally medical evidence or information suggesting your employer has acted in a particularly bad way towards you).
Examples include fictitious disciplinary procedures, collusion or a sustained discriminatory campaign over many months and serious stress.
Pension contributions
Payments made directly into pension schemes are separate from the £30,000 tax-free exemption and not normally subject to tax though there are limits to the annual and lifetime allowances for contributions which you need to check with the pension provider. Where compensation is over £30,000 employees sometimes ask for some of it to be allocated as a tax efficient employer pension contribution.
Independent advice should be sought from a qualified adviser.
What happens if an Agreement isn’t reached?
You may want to bring a claim. This must be done promptly and no later than 3 months of the termination date beginning with the ACAS process followed by a tribunal claim. These dates are strict so always take legal advice.
Contact Gordon - Settlement Agreement Solicitor in London
To contact a specialist Settlement Agreement Solicitor please complete my online contact form, call my mobile 07527 261 926 or the following landlines:
London: 02072477190 | Manchester: 0161 883 1255
Birmingham: 0121 663 1191
Very professional service in reviewing a settlement agreement quickly and efficiently. - Gary S.
