From Offer To Completion
Being presented with a settlement agreement does not mean you need to sign it immediately. The agreement should be reviewed carefully so you understand the payments being offered, the employment rights you are being asked to waive and any obligations that will continue after your employment ends.
Our role is to explain the agreement clearly, advise you on its legal effect and help you decide what to do next.
Send Us The Documents
The first step is to send us the complete settlement agreement you have received from your employer. You should also tell us about any deadline your employer has given you for responding.
Sending the complete document allows us to see the proposed payments, termination arrangements and the clauses your employer is asking you to accept.
Reviewing The Terms
We review the agreement before advising you so the discussion can focus on the terms that matter to you and any provisions that need further explanation.
The review considers both the financial terms and the legal obligations contained in the agreement.
Independent Legal Advice
You will speak with an employment solicitor who will explain what the agreement means in practical terms and the effect signing it will have on your employment rights.
A settlement agreement must satisfy specific legal requirements before it can become binding. One of those requirements is that you receive advice from a relevant independent adviser on the terms and effect of the agreement.
During the advice appointment you can ask questions about any part of the agreement you do not understand or any term that concerns you.
Signing a settlement agreement can prevent you from pursuing the employment claims covered by it. It is therefore important to understand exactly what you are agreeing to before signing.
Consider Your Options
Receiving a settlement agreement does not mean that you have to accept every term exactly as it has been presented.
If there are terms you are not comfortable with, we can explain which points may be appropriate to raise with your employer.
If you would like us to negotiate directly with your employer or its solicitor, this can involve additional work. You can read more on our settlement agreement negotiation page.
When You Are Ready
Once you understand the agreement and any required amendments have been dealt with, you can decide if you want to accept the final terms.
If you choose to proceed, the final agreement can be signed and your solicitor can complete the appropriate independent adviser documentation required by the agreement.
A settlement agreement is voluntary. You are not required to accept the initial terms simply because your employer has offered them.
After Signing
Once the agreement has been signed by the relevant parties and the required formalities have been completed, the obligations set out in the agreement take effect in accordance with its terms.
Your agreement should explain when your employment ends, when any settlement payment is due and any obligations that continue after termination.
The agreement should specify the payments due to you and the timetable for payment.
The agreement should set out when your employment ends and how your notice period is being dealt with.
Some provisions, such as confidentiality or restrictions, can continue after your employment has ended.
If a reference has been agreed, the wording or arrangement should normally be recorded in the settlement agreement.
Before You Sign
You should be given a reasonable period of time to consider the written settlement agreement and obtain independent advice.
The Acas Code of Practice gives a general recommendation of at least 10 calendar days to consider the formal written terms and obtain independent advice, unless the parties agree otherwise.
Have you been given a shorter deadline? Send us the agreement and tell us the date your employer has asked you to respond by. We can take that deadline into account when reviewing your matter.