Employment Law

A settlement agreement is a contract that stops an employee bringing a legal claim against their employer. 

Both you and your employer can suggest a settlement agreement. It’s essentially a way for you and your employer to ‘part company’ on certain agreed terms. Settlement agreements can also be used to terminate your employment or can settle an ongoing claim you’re bringing in a court or employment tribunal.

You might hear settlement agreements referred to by these unofficial terms:

·      Termination agreements

·      Compromise agreements

·      Gagging clauses

·      Mutually-agreed resignation

·      Ex-gratia payments

·      Golden goodbyes

It’s important to make sure the deal is fair for all parties. Each case is different: you might be looking to maximise the money you can get, or you might simply need a good reference. Most settlement agreements result in a ‘clean break’, but sometimes the working relationship continues. 

Whatever your situation, a direct access barrister can help you get the best deal from a settlement agreement.

Find out how strong your case is:A Barrister will consider your unfair dismissal claim in detail, closely examining the conduct of your employer, and advise you on whether you have a good case.

They will always be honest and clear, and will be careful not to give you false hope. At the same time, we will always go to bat for you with a view to achieving the best possible result.

What is an unfair dismissal?

An employer cannot end someone’s employment (dismiss them) for no good reason. If they are dismissed, other than for a lawful reason, an eligible employee will have a legal claim for unfair dismissal which they can bring in an employment tribunal.

There are only five potentially lawful reasons why an employer can dismiss someone. A dismissal for any other reason will be unfair. An employee is therefore protected against the whim of their employer.

The lawful reasons are:

·      Misconduct by the employee

·      Capability of the employee (which includes ill health)

·      Redundancy

·      Illegality (e.g. someone whose job is to drive losing their driving licence)

·      Some other substantial reason (a catch-all which might include a break-down of working relationships for some reason)

Even if an employer can show it had one of these reasons for ending employment, the dismissal can still be unfair if the employer did not follow the correct procedure properly.

A fair procedure will usually involve informing the employee in writing of the issue, meeting with the employee to discuss the matter and allowing them to have their say. Giving the employee the opportunity to be accompanied by a work colleague or trade union representative at any formal meeting as well as the right of appeal against any decision to dismiss them are also important elements of any fair procedure.

A contract of employment is a legally binding agreement between an employer and employee. In the UK, the term ‘employee’ is defined by the Employment Rights Act 1996 as an individual who has entered into or works under a contract of service or apprenticeship, and they are a mixture of ‘express’ and ‘implied’ terms.

Express terms

Express terms are those which are actually stated in writing or given verbally. Written express terms are not restricted to written employment contracts but can include a number of the organisation’s other documents, such as a staff handbook, unless the provisions are deemed not to have contractual effect.

Before drafting express terms, employers need to be familiar with the relevant law, such as employee status, the rules governing written particulars, equal pay and the minimum wage, fixed-term and part-time work, flexible working, parental leave and working hours. The express terms must comply with any minimum legal standards such as the right to paid holidays and the right to daily and weekly rest breaks.

All employees and, from 6 April 2020, all workers too, have a statutory right to a written statement of particulars of employment setting out certain key employment terms on their first day of work.

EMPLOYMENT TRIBUNAL REPRESENTATION FOR INDIVIDUALS

If you have been unfairly dismissed or forced to leave your role, you may be able to make a claim against your employer. You can also make a claim against your employer if you have been discriminated against.

If your employer does agree to settle your claim at an early stage, your claim will be heard at an Employment Tribunal. However, the vast majority of our cases are settled long before any final hearing, reducing the Employment Tribunal costs significantly.

EMPLOYMENT TRIBUNAL COSTS

Employment Tribunal costs can be a huge barrier to claims being made by employees. To reduce your costs and get an early indication of whether your claim will be successful, Attwells always suggests you submit your case for an initial review. If you have an employment contract and any other relevant documents, you can upload these and one of our Employment barristers will review your case to arrange a conference