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If you’ve been treated poorly by your employer then you may be in a situation where you have to decide whether you want to pursue an Employment Tribunal claim or try and settle your claim (normally via a contract known as a ‘settlement agreement’). In this article Chris Hadrill, the partner in the employment department at Redmans, provides his nine top tips to employees on what to consider when they’re deciding whether to bring an Employment Tribunal claim or sign a settlement agreement

  1. What claims do you have, and what are the chances of success of those claims?
  2. What remedy are you seeking from an Employment Tribunal claim?
  3. Are you interested in settling your matter, or is bringing an Employment Tribunal claim a point of principle for you?
  4. What is your employer willing to offer to settle your Employment Tribunal claim?
  5. What other terms are you looking to negotiate into the settlement agreement?
  6. What wider impact could an Employment Tribunal claim have on you?
  7. Are you looking for the certainty of a settlement or the potential ‘up-side’ of an Employment Tribunal claim?
  8. Do you have the time, patience and energy to devote to bringing an Employment Tribunal claim?
  9. What funding method can you obtain to bring an Employment Tribunal claim?

What claims do you have, and what are the chances of success of those claims?

One of the first things to do is to, based on the circumstances of your case, analyse what potential claims you have – have you been harassed in the workplace, discriminated against, victimised, or unfairly dismissed? Which claims you are able, and choose, to bring will of course have a significant impact upon the prospects of success and value of any Employment Tribunal claim you choose to bring.

What remedy are you seeking from an Employment Tribunal claim?

If you are only seeking compensation (i.e. a financial payment) from your Employment Tribunal claim then it is, generally, more likely that you may be able to settle your claim (either before you issue it or during the life of the claim). If, however, you are seeking another form of remedy (reinstatement or re-engagement, a declaration, or a recommendation) then you might have to seek this through a successful claim in the Employment Tribunal (as it is normally difficult to persuade an employer to re-engage you through a settlement agreement).

Are you interested in settling your matter, or is bringing an Employment Tribunal claim a point of principle for you?

This will, of course, be a key question: if you’re not interested in settling your (potential) claim then there is very little point in entering into settlement agreement negotiations; you will probably be best served in concentrating your energy on preparing your Employment Tribunal claim. If you are interested in achieving a settlement then it’s normally best to approach the other side at a reasonably early stage to try and agree a settlement package.

What is your employer willing to offer to settle your Employment Tribunal claim?

What your employer is willing to offer, and what you are willing to accept, to settle your claim will be very important in determining whether there is in fact any realistic prospect of settling your claim – if you value your claim at £50,000 and your employer is only willing to offer £5,000 to settle it then it’s probably unlikely that there is going to be any form of agreement on settlement terms. If, however, your employer  is willing to offer £20,000 and you value your claim at at least £15,000 then it’s much more likely that the parties will be able to reach some form of compromise over the value.

An advantage of a settlement agreement is that you will often be able to be some, or all, of the settlement payment tax-free (if it as compensation for the loss of your employment).

What other terms are you looking to negotiate into the settlement agreement?

In my experience employees are normally looking for more than financial compensation in bringing Employment Tribunal claims (and settling them via settlement agreements) – employees are also interested in agreeing a reference, making sure that the terms of the agreement and the circumstances of their case are kept confidential, and ensuring that nobody at their (previous) employer says anything ‘derogatory’ about them. If these issues that can be agreed with the other side then there is, of course, a much greater chance of settlement agreement terms being agreed and finalized.

What wider impact could an Employment Tribunal claim have on you or your employer?

One of the main considerations with a claim in the Employment Tribunal is the public nature of the forum and, therefore, the potential publicity (whether positive or adverse) that an Employment Tribunal judgment could have for one or more parties to the litigation – all Employment Tribunal judgments are now published online and the parties to the litigation will therefore want to think carefully about what impact any publicity could have on their careers or business.

Are you looking for the certainty of a settlement or the potential ‘up-side’ of an Employment Tribunal claim?

The benefit of a settlement agreement is generally that the parties to the agreement will be (reasonably) happy with the terms that they’re agreeing to (otherwise they wouldn’t enter into the agreement) and, further, a settlement agreement provides finality and certainty for both the employer and the employee. However, agreeing to a settlement agreement does, of course, limit the ‘upside’ to exercising any rights you may have. You’ll therefore have to carefully consider what course of action is in your best interests.

Do you have the time, patience and energy to devote to bringing an Employment Tribunal claim?

Before you embark on a claim in the Employment Tribunal you should be aware that it will potentially be a tough, stressful and drawn-out process: claims came sometimes take more than 12 months to conclude, you’ll have to exercise patience in the pursuit of your claim, and it is often stressful to go through the process for the first time.

What funding method can you obtain to bring an Employment Tribunal claim?

If you’re thinking about bringing an Employment Tribunal claim then you may wish to see whether you can obtain representation from a specialist employment solicitor – the types of funding that you will normally be offered are as follows: ‘no win no fee’ funding, hourly rate funding, legal expenses insurance (if you have insurance funding), and fixed fee funding.

About

Redmans Employment Team deal with employment matters for both employers and employees, including drafting employment contracts and policies, advising employers and employees on compromise agreements, handling day-to-day HR issues, advising on restructures, and handling Employment Tribunal cases for both employers and employees Call 020 3397 3603 to speak to one of the members of our employment team or email us on enquiries@redmans.co.uk. Redmans have offices in Richmond, Chiswick, Hammersmith, Fulham, Kingston, Wimbledon, Ealing, Kings Cross and Marylebone (meetings strictly by appointment only).

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Testimonials

4.67 Average

66 Reviews

Anonymous

As with All solicitors advice without consequence but understood and communicated my legal position

Posted 6 days ago

Anonymous

Prompt, professional and excellent service.

Posted 1 week ago

Dominic C

Excellent service, prompt and helpful

Posted 1 week ago

Anonymous

I found Redman’s to be very efficient and got me the best deal available in the short time scale that was available.

Posted 2 weeks ago

Victor L

Very professional. Provided excellent advice on my Settlement agreement.

Posted 2 weeks ago

Anonymous

Professional from start to finish.

Posted 2 weeks ago

Oliver W

Excellent service provided by Redmans, will certainly consider using again.

Posted 2 weeks ago

Melanie H

Very professional and extremely personable service. Thank you very much.

Posted 4 weeks ago

Anonymous

I found Chris to be very approachable and easy to speak with about complex matters. He took action quickly and his updates to me, as his client, were prompt. I would recommend Chris and the team at Redmans without hesitation.

Posted 4 weeks ago

Anonymous

Good advice

Posted 4 weeks ago

Anonymous

Overall happy with the service provided by Chris and Rana.

Posted 4 weeks ago

Anonymous

Chris and Rana provide a great service, very informed, diligent and care about your result, would recommend Redmans

Posted 4 weeks ago

David W

A speedy efficient friendly service, I would definitely recommend Redmans Solicitors for processing Settlement Agreements.

Posted 4 weeks ago

Anonymous

Both Rana and Chris were fantastic. From the first phone call I was confident my matter was in good hands. I was not disappointed. I would highly recommend Redmans. Thank you again for all of your support and advice.

Posted 1 month ago

Federico S

Great advices and communication. Through Redmana I obtained match more than what I thought. Highly recommended

Posted 1 month ago

Tom G

A good and efficient service with the required legal advice provided for a settlement agreement.

Posted 1 month ago

Francis T

The solicitor I used was Chris Hadrill, who I found extremely professional and I felt that he made me feel at ease, considering the subject matter he was assisting me with.

Posted 1 month ago

Anonymous

Chris provided excellent assistance with the negotiation of my settlement agreement. From start to finish, I was consitently updated and advised on the best course of action to take. I would highly recommend Chris and Redmans Solicitors.

Posted 1 month ago

Anonymous

They are busy people but manage well so generally I would recommend them.

Posted 1 month ago

Anonymous

Very efficient and professional service from my first phone call making an enquiry. Timescales of the matter in hand were met and within the agreed budget. Would highly recommend Redmans

Posted 1 month ago

Lisa B

Really very good service, always available to answer questions, provide my with any information I needed to make informed decisions.

Posted 1 month ago