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In this article one of our specialist employment solicitors, Chris Hadrill, provides ten tips on how to negotiate a settlement agreement with your employer

  1. Research the law in order to determine how much your settlement agreement is reasonably worth
  2. Use any personal connections that you have with management to negotiation your deal
  3. Think about instructing specialist employment solicitors to advise you
  4. Set out clearly what benefits you wish to receive under the terms of the settlement agreement
  5. Deal with the negotiations with your employer calmly and courteously
  6. Send a written grievance to your employer detailing your complaints
  7. Don’t always accept the first offer that your employer makes
  8. Check the terms of any settlement agreement offered carefully
  9. Consider carefully the costs and benefits of signing a settlement agreement as compared to litigating
  10. Make sure that your settlement agreement is legally compliant

Research the law in order to determine how much your settlement agreement is reasonably worth

Make sure you research the law relevant to your matter thoroughly before starting negotiations with your employer – for example, if you’re being made redundant then you’ll need to check (among other things) whether you’re entitled to bring an unfair dismissal claim, whether you’re entitled to a statutory redundancy payment (and , if so, how much), whether you’re entitled to a contractual redundancy payment (and, if so, how much), what period of notice you’re entitled to, and what other benefits you’ll receive as part of your redundancy package. You can do the research yourself but it is probably a good idea to speak to a specialist employment solicitor in order to check what you’re entitled to

Use any personal connections that you have with management to negotiation your deal

If you’ve instructed a solicitor to advise you on your settlement agreement then you may think that the natural thing to do would be to instruct the solicitor to communicate with your employer for you. However, it isn’t always the case that it’s best for your solicitor to negotiate/communicate with your employer on your behalf; in certain circumstances it may in fact be preferable for you to communicate with your employer yourself – this generally applies if you have good connections with the senior manager(s) who has responsibility for dealing with the settlement agreement negotiations, as you can use your personal relationship with them to negotiate to good effect. Personal connections do, generally, really matter, as then you’re more than a ‘number’ to management. This may seem basic but it’s true.

If you do have good personal relationships with the relevant senior management then it’s nonetheless still a good idea to speak to your lawyer first to examine your entitlements, the tactics to use in negotiations, and to discuss a negotiating strategy.

Think about instructing specialist employment solicitors to advise you

Again, this may seem like fairly basic advice (and something that a solicitor would say) but it really is a good idea to get specialist advice from an employment solicitor at an early stage in your settlement agreement negotiations in order to identify what your entitlements might be, what issues need to be negotiated, and to discuss negotiation tactics and strategies.

Set out clearly what benefits you wish to receive under the terms of the settlement agreement

The first things you should identify in the settlement agreement negotiations are:

  1. What your basic minimum entitlements are; and
  2. What you wish to gain out of the settlement agreement negotiations (i.e. what your ideal package is)

It may also help to have information on what your employer’s general approach to settlement agreement negotiations are i.e. what packages your employer normally offers and what their approach is to various issues (such as, for example, what enhanced redundancy packages the employer offers as a matter of custom and practice or what their position is on bonuses being paid out). You might have this information but, if you don’t, your solicitor might have this information (based upon his experience with the relevant employer) or you might be able to speak to a (current or former) colleague about what they received under their settlement agreement (although be careful here, though – you don’t want to breach confidentiality clauses (and potentially be found out) before negotiations start).

Deal with the negotiations with your employer calmly and courteously

A basic point (yet again) but keeping the relationship between you and your employer (or your solicitor and your employer or their representative) is generally pretty important – if the settlement agreement negotiations start to become fractious or bad-tempered then this may decrease the likelihood of achieving certain targets for the settlement agreement or could potentially lead to a breakdown in the negotiations. This is best avoided for obvious reasons.

Send a written grievance to your employer detailing your complaints

This may not be appropriate in all circumstances (for example, if you’re taking a voluntary redundancy package) but, in appropriate circumstances, sending your employer a detailed grievance outlining your complaints may assist in negotiating your settlement agreement for the following reasons:

  1. It will identify that you have a problem (if your employer isn’t already aware of this)
  2. It will identify what your complaints are, and potentially what your Employment Tribunal claims might be – this will give your employer an opportunity to investigate those complaints, determine the risk that they face, and potentially allow them to estimate an appropriate value for your settlement agreement
  3. It will serve as a useful ‘placemarker’ for an Employment Tribunal of what your complaints were at a particular time

Don’t always accept the first offer that your employer makes

Even if your employer says that their first offer is ‘full and final’ or ‘non-negotiable’ there is, in most circumstances, room for negotiating the financial value of the settlement agreement and/or other terms. One of the first pieces of advice that I give most clients with settlement agreements is that it’s almost always worth at least one attempt to increase the value of any settlement agreement.

Check the terms of any settlement agreement offered carefully

When you receive your settlement agreement it’s recommended that you review it thoroughly in order to determine what financial package you’re being offered and how the terms of the agreement offered match up with your expectations. You should also give a copy of your settlement agreement to your instructed solicitor so that your solicitor can offer you advice on what amendments, in their experience, should be made to the settlement agreement.

Consider carefully the costs and benefits of signing a settlement agreement as compared to litigating

After you’ve gone through a few rounds of negotiation with your employer, and if the package that you’re being offered under your 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 litigating; discussing this in detail will allow you to make an informed decision about what you want to do going forward.

Make sure that your settlement agreement is legally compliant

Your settlement agreement will need to meet certain legal conditions in order to be valid and binding – make sure that your solicitor checks whether all the conditions are met before you sign it (as you don’t want to find out at a later date that your settlement agreement isn’t binding or valid).

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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Testimonials

4.62 Average

39 Reviews

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 3 days ago

Anonymous

Redmans provided excellent services

Posted 3 days ago

Sibel U

Excellent service

Posted 3 days 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 3 days ago

Derek S

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

Posted 4 days 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 2 weeks ago

Anonymous

Worked very quickly considering right deadlines - and gave great advice

Posted 2 weeks ago

Anonymous

Redmans provided me with excellent advice at a very stressful time. The calm, confident and extremely professional manner in which my solicitor handled my case made the issue much easier to deal with and I was very impressed with the level of service I received.

Posted 2 weeks ago

Anonymous

Immediate response to my initial enquiry. Very clear throughout the whole process and thorough and great communication which worked really well during quite a stressful time. Chris Hadrill was extremely helpful and made me feel at ease.

Posted 3 months ago

Nick D

I received a very professional service from Chris. The advice given really helped to leave me comfortable to sign the settlement agreement following my redundancy. Would be happy to recommend your services to others.

Posted 3 months ago

Anonymous

Excellent service from initial contact to deliverables.

Posted 4 months ago

Virginia K

Yes, Chris Hadrill answered all my questions and I feel more confident with my current situation

Posted 4 months ago

Anonymous

Chris Hadrill was referred to me my a friend of mine. I found the service to be efficient, quick and like Chris's direct approach to my work. Well done and thank you Chris!

Posted 4 months ago

Andy W

Very prompt & structured service that helped put my mind at rest at a difficult time

Posted 4 months ago

Anonymous

I have found Redmans to be very helpful, diligant and thoroughly professional when dealing with them, plus they gone that extra mile for me !

Posted 4 months ago

Anonymous

Thank you to Chris Hadrill at Redmans for his assistance in settling my case. I contacted him at the very last minute and he was happy to help me and managed to get everything done on time and in a very professional manner. I will definitely be happy to work with him again .

Posted 4 months ago

Redman's provided excellent legal employment advice for me during a difficult time in my employment. Chris was my lawyer, super efficient, quick, reliable and clearly very experienced in the matter. Could not ask for a better law firm to deal with your query if you are in need of some help. Would definitely use them again in the future. Highly recommending Chris.

Posted 8 months ago

Steven

Chris Hadrill was very professional and responsive. I would highly recommend him

Posted 8 months ago

Dinah

Very Efficient, with very quick email reply’s. I had a matter that needed resolving within a very short space of time and Redmans Solicitors were great with dealing with my matter quickly.

Posted 8 months ago

Ankar

At Redmans the solicitor that was dealing with me was Chris. He dealt with my situation smoothly with clear guidance and explanation

Posted 8 months ago

Anonymous

Clear, concise advice and guidance delivered by an experienced and very capable solicitor, within the timelines required

Posted 9 months ago