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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

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    269 Reviews

    Sue W

    The people at Redmans talk to you with respect and make you feel like they take your situation personal. They clearly care and are extremely professional. I have recommended Redmans to many people.

    Posted 3 days ago

    Anonymous

    Redmans Solicitors were consistently prompt, efficient and professional from the start of my reaching out to them for support in relation to contentious negotiations of an employment matter that continued for almost two months resulting in a positive settlement agreement. Chris Hadrill was diligent, thorough, empathetic and objective in his advice and guidance, showing deep and broad knowledge of the law and legal processes plus extensive practical experience in handling complex matters, resulting in clear and pragmatic advice in ambiguous circumstances that resulted in a very good outcome. I fully recommend Chris Hadrill and Redmans Solicitors! I have made this review anonymous purely because of the confidentiality obligations in the settlement agreement concluded.

    Posted 1 month ago

    Michelle W

    Redmans solicitors provided legal support and advice for a settlement agreement. Excellent customer service, very professional. The senior associate solicitor kept me updated throughout the process, showed empathy and the agreement was signed-off / completed within the agreed timeline.

    Posted 1 month ago

    Mark W

    Redmans Solicitors were extremely professional and helpful! Chris Hadrill handled my case and was an amazing help! His guidance, advice and understanding to my redundancy settlement were always clear, concise and very helpful and I am very grateful to him, and glad I found Redmans to help with my settlement. I highly recommend them!

    Posted 1 month ago

    Alison M

    Very happy with the advice I received

    Posted 1 month ago

    Margaret A

    I found everything about the company to be extremely professional and efficient. During my initial contact with Chris, he listened well and was reassuring, so I felt confident that my case would be well handled. Caroline was excellent at explaining all the legal points and answering my questions, as well as being very supportive and understanding throughout the process. I would definitely recommend this company.

    Posted 1 month ago

    Sanja K

    Very efficient and professional service.

    Posted 1 month ago

    Anonymous

    I found the advice I was given by Redmans Solicitors to be clear and useful and found the solicitor on my case to be both knowledgeable and approachable.

    Posted 1 month ago

    Karen T

    Great service. Thank you.

    Posted 1 month ago

    Anonymous

    Excellent service from Chris & Mel Chin. The best outcome was achieved from the redundancy process. They were extremely thorough, listened carefully and acted swiftly on my behalf. I highly recommend Redmans Solicitors

    Posted 1 month ago

    Shanine M

    Excellent service, thank you so much!

    Posted 1 month ago

    Anonymous

    I found Caroline and Chris very Helpful and provided excellent service. Caroline especially provided great legal advice and made me feel at ease with the whole process. I would highly recommend them. Thank you!

    Posted 1 month ago

    Gayle B

    Excellent company very professional would definitely recommend

    Posted 1 month ago

    Alex K

    Redmans provided an excellent service, timely and effective. Will definitely recommend.

    Posted 1 month ago

    Anonymous

    Great job done on my employment law

    Posted 1 month ago

    Dominica S

    Caroline & Chris were very prompt and efficient.Very happy with the service and will definitely recommend Redmans Solicitor to everyone !

    Posted 1 month ago

    Sandra K

    If you are looking for a group of solicitors who are Professional, Caring and on point, then look no futher than Redmans. I was literally hand held through out my case. Can not find fault with this company, very happy with the result and the service i received. Would highly recommend Redmans.

    Posted 1 month ago

    Anonymous

    I found dealing with Redmans a pleasure. I got to speak to someone quickly, the advice was profferred promplty and the service was not 'pushy'. In addition, the administration was excellent. What more could you ask for?

    Posted 1 month ago

    ALISDAIR L

    Redmans did a brilliant job regarding my redundancy agreement. I miss read an extra charge which wasnt the case so doing a new review to clarify. I would recommend Redmans for any employment law issues you may have.

    Posted 2 months ago

    Christos G

    Great legal advice and quick correspondence. Very supportive and helpful through the entire process. Thank you Redmans!

    Posted 2 months ago

    Anonymous

    Chris Hadrill advised me on a redundancy settlement agreement. He was very responsive, easy to deal with and gave me good advice at a stressful time.

    Posted 2 months ago