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If you have been offered a settlement agreement by your employer there are certain things you should ensure you consider. Listed below are some of the most important considerations to take onto account when negotiating and entering into a settlement agreement. You should also discuss these points with your solicitor.
Why are you being offered a settlement agreement? This can affect how much or on what terms your offer is made. Do you understand what the outcomes could be if you do not agree? It could be that you have a good claim at an employment Tribunal, or that your employer could fairly dismiss you if they go through formal procedure.
Have you considered the impact of a settlement agreement on future employment? If you secure a settlement agreement you may be given a favourable reference and time to look for new employment.
Will a settlement agreement have an impact in any other way? For example under your employment contract it could be seen as a dismissal and thus you would not qualify for certain benefits.
Do you understand that negotiation discussions cannot normally be used as evidence in courts or an employment tribunal in a subsequent unfair dismissal claim?
Are you aware that by signing a settlement agreement you are waiving your rights to bring any employment tribunal claim listed in the agreement?
Do you know that you do no have to eneter into a settlement agreement just because you are offered one? The process is voluntary and you do not have to go ahead with an agreement if you do not wish to do so.
Have you thought about what you think a reasonable settlement figure might be? Your solicitor will be able to help you asses this when you give them details of your circumstances.
Has your employer offered to include a reference? If not do you wish to request this as part of your settlement? Have you had any thought as to how you would like the reference to be worded?
Do you think it will be useful to arrange a meeting with your employer? At this meeting you discuss and negotiate settlement agreement options.
Are you aware of the legal requirements that need to be complied with for a settlement agreement to be valid?
Have you had advice from an independent adviser on the terms of the proposed settlement agreement ? A settlement agreement will not be legally binding unless you have received such advice and advice on the effect it will have on your ability to bring a claim before an employment tribunal.
Whether you are an employee or an employer in need of advice in relation to a settlement agreement or any other employment law issue in Edinburgh, Scotland, Employment Law Edinburgh's team of specialist Employment solicitors can help. To get in touch, you can either call us on 0131 516 7728 or complete our enquiry form.