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What's it regarding?

What is a settlement agreement?

A settlement agreement may be offered to you if your employer wants you to leave, or offers you voluntary redundancy. Your employer will offer you a settlement agreement as it reduces the chance that you will take out an employment tribunal claim against them. In effect, they are paying you to leave. This might be good news for employees in some situations, but as you loose your right to take your employer to a tribunal, it might not be the right decision for you. To discuss a settlement agreement in your situation, call the employment solicitors at Levins for more information.

I’m not getting on with my employer, and they have offered to pay me if I agree to leave. What do I do?

Make an appointment with the employment solicitors at Levin’s as soon as possible. The agreement your employer has offered you is a settlement agreement. You must be allowed time to get independent advice on the terms of the agreement before you sign it. Your employer must pay for you to get advice on any settlement agreement they offer you. Sometimes employers offer an employee a settlement to avoid a larger claim – such as a potential discrimination or unfair dismissal case. If Levin’s believe you have a winnable tribunal case, we will advise you on this as part of our service.

My employer is saying I am being made redundant.

You may not be offered voluntary redundancy, or a settlement agreement. Your employer may make you redundant. If they do this, they must consult with you and follow a fair process. For information on being made redundant, please go to our article on Redundancy

What are the requirements for a settlement agreement?

The settlement agreement must be in writing, and contain all the relevant terms you and your employer have agreed. By law, your employer must allow you to get independent legal advice on the settlement they are offering you.

Your employer must pay for that independent legal advice, so it won’t cost you a penny.

Do I have to just accept my employer’s settlement agreement?

No. A settlement agreement is not valid until it is signed by you and your employer, and your solicitor has provided a certificate to say they have given you independent legal advice. When you get the settlement agreement from your employer, you should take it straight away to an independent solicitor of your choice and they will explain all the terms to you. Levins employment solicitors have a great a deal of experience in this sort of advice as we have provided independent legal advice on settlement agreements to many employees.

To read and get advice on the settlement agreement is a free service to you as your employer must pay for it. Levins can negotiate with your employer if any of the terms are unfair or need to be clarified. If you want to make an employment tribunal claim against your employer, or you do not want to accept the settlement agreement, Levin’s employment solicitors may take this case on and will discuss with you if you have to pay for this additional service.

Do Levin’s Solicitors provide advice on settlement agreements? 

At Levins, we have helped many employees with settlement agreements. We will set up an appointment for you to come in and see one of the solicitors in our employment team. They will read your agreement, give you some initial advice and if necessary telephone your employer to check any confusing terms. Once you are happy that you understand all the settlement terms, Levins will send you a letter with written advice about the terms of your agreement. You will sign the agreement, and Levins will then send it to your employer for them to sign. They will also send their invoice direct to the employer – so you don’t even have to pay and claim the money back from your employer, it is all handled by Levins.

Call Levins Solicitors now on 0151 480 5777 or email employment@levinslaw.co.uk to make an appointment to speak to someone in our employment team.

Jon Heath

Louise Roberts