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Chris Hadrill, the partner in the employment team at Redmans, analyses the “ACAS Guide on Settlement Agreements”: what is it, and what effect does it have?

What is the ACAS Guide on Settlement Agreements?

The ACAS Guide on Settlement Agreements is, to put it bluntly, a guide to settlement agreements published by ACAS. It contains guidance for employers and employees on the purpose and form of settlement agreements, as well as the admissibility of discussions relating to the offer of a settlement agreement (or the offer of settlement terms). It also contains a helpful explanation of who can enter into a settlement agreement, why an employer and an employee may wish to enter into a settlement agreement, and what the risks and benefits of completing a settlement agreement are.

What effect does the ACAS Guide on Settlement Agreements have?

The ACAS Guide on Settlement Agreements is intended to be a guide to “good employment practice”, rather than stipulating legal requirements for settlement agreements. For example, the ACAS Guide specifies that an employee should be allowed up to ten days in which to consider the offer of a settlement agreement as a matter of good practice; in reality, there is no legal requirement for employers to provide an employee with a reasonable amount of time in which to consider the terms of the agreement (although it is normally recommended that a reasonable period of time is given to the employee for various reasons).

If an employer is seeking to pressure you into signing a settlement agreement without giving you a reasonable period of time in which to consider the terms of the agreement then you should flag up to your employer what the ACAS Guide recommends in terms of timelines, and seek an extension of time in which to consider the terms.

How can the ACAS Guide on Settlement Agreements be helpful?

The ACAS Guide on Settlement Agreements can be extremely helpful – it is an easily-digestible guide to what an employee or an employer may want to consider when agreeing settlement terms (whether this is in relation to the termination of the employment relationship or not). It also contains some helpful templates for letters that an employee and/or an employer may wish to use when entering into and negotiating settlement agreements.

However, although the ACAS Guide on Settlement Agreements can be helpful, it is always advisable to obtain independent legal advice from a legal adviser (such as, for example, a specialist employment solicitor) – obtaining such advice will allow you to understand exactly what you’re signing, how the agreement can be improved, and what steps are necessary to finalize the settlement agreement (should you wish to sign it). Your employer will normally pay for this legal advice, and you’ll therefore normally have access to specialist legal advice on your settlement agreement with no direct cost to you.

The ACAS Guide on Settlement Agreements can be found here.

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

4.62 Average

53 Reviews

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 3 days ago

Federico S

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

Posted 5 days ago

Tom G

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

Posted 5 days 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 week 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 week ago

Anonymous

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

Posted 1 week 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 3 weeks ago

Lisa B

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

Posted 3 weeks ago

Anonymous

Offered good support and advice

Posted 3 weeks ago

Anonymous

Chris reviewed and managed my compromise agreement swiftly, accurately, helpfully, and on budget. His input on key non-compete clauses was valuable, his communications were clear and concise, and he was always swift in responding. Highly recommended.

Posted 3 weeks ago

Gurbir C

Excellent legal advice service.

Posted 3 weeks ago

Tim

I found Redmans to be very helpful and efficient in conducting my case which was concluded in a timely and diligent manner

Posted 3 weeks ago

Anonymous

I found Redman Solicitors to be very good and worked very well to an extremely tight timescale. I would happily recommend them again especially Rana.

Posted 3 weeks ago

Anonymous

I received excellent, knowledgeable and critically timely support from Chris regarding my settlement agreement, and would wholeheartedly recommend Chris in these matters.

Posted 3 weeks ago

Katelyn

The solicitor communicated well with me and made sure I understood everything. He did everything needed for my settlement agreement and tried to get the wording changed in my favour too.

Posted 4 weeks ago

Anonymous

Redmans provided excellent services

Posted 4 weeks ago

Sibel U

Excellent service

Posted 4 weeks ago

Peter S

I was very happy with the level of advise I received from Caroline Lewis, and a very professional service fron Chris, The advice given really helped me and I was comfortable to sign the settlement agreement following my redundancy. I would be more than happy to recommend your services to others.

Posted 4 weeks ago

Derek S

I very much appreciated the help provided by Redmans in the settlement agreement agreed with my former employer.

Posted 1 month ago

Waseem M

It was the first ime I used Redmans Solicitors and to be honest, thety were amazing. Rana Tandon and Chris Hadrill were out of this world. They made the process as simply and smooth as can be. Thank you so much for all your support over the last week.

Posted 1 month ago

Anonymous

Worked very quickly considering right deadlines - and gave great advice

Posted 1 month ago