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Employment Law Solicitor Chris Hadrill takes a look at settlement agreements and what factors you should weigh up in deciding whether to bring an employment tribunal claim or sign a settlement agreement.

If you’ve been offered a settlement agreement then you’ll want to know whether you’re being offered a fair value for settling your potential employment tribunal claims, and should therefore sign the settlement agreement, or whether you’d be better served in bringing a claim in the employment tribunal to try to obtain compensation. In order to determine whether the settlement agreement you’re being offered is fair or not, you should have reference to the following key factors:

  1. The nature of the potential employment tribunal claims you have
  2. The strength of the potential employment tribunal claims
  3. The reasonable value of those claims in the employment tribunal
  4. The amount you’re being offered in the settlement agreement to settle your potential claims
  5. Other relevant terms in the settlement agreement

The nature of the potential employment tribunal claims you have

Settlement agreements are normally used to settle the following types of potential employment tribunal proceedings: unfair dismissal (including redundancy), constructive dismissal, detriment and/or dismissal due to protected disclosures being made (also known as “whistleblowing”), workplace discrimination (in any form), harassment and/or victimization. Obviously, the types of claim that you can bring will very much depend on the particular facts of your matter. When you talk to the solicitor advising you on your settlement agreement you should put all of the facts of your case to him or her so they can advise you on which potential types of claim you may have.

The strength of the potential employment tribunal claims

You will have to rely on your solicitor to advise you of the potential strength of your employment tribunal claims. Your solicitor won’t be able to provide you with exact chances of success in your case but they should be able to let you know whether they think your case will be successful or not, and why. You should try and provide any and all documentary evidence to your legal adviser so that they can properly assess your claim, as well as letting them know who you think could provide relevant, supportive witness evidence (should this be applicable).

The reasonable value of those claims in the employment tribunal

Again, this is not an exact science at a pre-action stage (i.e. before you issue any claim in the employment tribunal) but your legal adviser should be able to inform you (on a broad basis) as to how much they think your potential employment tribunal claims are worth so this can be factored into an analysis of whether you’ve been offered a reasonably sufficient amount to settle these claims.

The amount you’re being offered in the settlement agreement to settle your potential claims

Your employer will normally inform you of how much they’re willing to offer to settle your claim – this will generally include the statutory and contractual minimum sums that you are owed (such as notice pay, accrued but untaken holiday, any other contractual entitlement e.g. commision or bonus etc.), as well as an ex-gratia sum to compensate you for the manner in which your employment was terminated. You should, at this point, be able to compare and contrast what you’re being offered by your employer against what you have been informed is the reasonable value of your employment tribunal claims.

Other relevant terms in the settlement agreement

How much you’re being paid to enter into a settlement agreement will normally be the most important aspect to a client but it isn’t the only factor. Other important terms in a settlement agreement can include whether the client is deemed to be a “good leaver”, provisions relating to gardening leave and whether there are restrictive covenants contained within the agreement (among other things). You should – as above – provide your legal adviser with a copy of your settlement agreement so they may properly advise you on the entirety of the terms that you’re agreeing to.

About Chris Hadrill

Chris is a specialist employment lawyer at Redmans. He specialises in contentious and non-contentious employment matters, including breach of contract claims, compromise agreements and Employment Tribunal cases. He writes on employment law matters on a variety of websites, including Direct 2 Lawyers, Lawontheweb.co.uk, LegalVoice, the Justice Gap and his own blog. Contact Chris by emailing him at chadrill@redmans.co.uk

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One Response to Employment Law Solicitor Chris Hadrill on how you determine whether to sign a settlement agreement or bring an employment tribunal claim

  1. […] settlement agreement isn’t what you wanted, carefully discuss with your solicitor what the various costs and benefits are to signing your settlement agreement or rejecting the settlement agreement and potentially […]

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Testimonials

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69 Reviews

Anonymous

The guidance and assistance I recently received when using Redman's was fantastic. Caroline & Chris were both very informative and understanding walking me through each step. Thank you.

Posted 2 days ago

Nicola W

Fantastic service, very quick and efficient. Thank you

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Anonymous

Excellent professional service.

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Anonymous

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

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Anonymous

Prompt, professional and excellent service.

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Excellent service, prompt and helpful

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Anonymous

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

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Victor L

Very professional. Provided excellent advice on my Settlement agreement.

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Anonymous

Professional from start to finish.

Posted 2 weeks ago

Oliver W

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

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Melanie H

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

Posted 1 month 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 1 month ago

Anonymous

Good advice

Posted 1 month ago

Anonymous

Overall happy with the service provided by Chris and Rana.

Posted 1 month ago

Anonymous

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

Posted 1 month ago

David W

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

Posted 1 month 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