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Chris Hadrill, a specialist employment solicitor at Redmans, answers the question:

“Is it fair for my employer to offer me a settlement agreement as an alternative to dismissing me for performance-related reasons?”

The question of whether it is ‘fair’ for your employer to offer you a settlement agreement is, almost exclusively, yes – there is generally no prejudice caused to an employee by the simple offering of a settlement agreement. The question here, therefore, seems to be: are the terms of settlement that my employer is offering me fair? An analysis of this question will invariably hinge upon two factors: one, the circumstances of the dismissal and, two, the terms of settlement that you are being offered.

The circumstances of your (potential) dismissal are relevant in order to assess the strength of your potential claim for unfair dismissal and, in turn, the reasonable value of your unfair dismissal claim – the higher the value of your unfair dismissal claim, the more ‘leverage’ that you will have in negotiations regarding a settlement agreement. If you are an employee and have sufficient continuous service to bring a claim for unfair dismissal (2 years from April 2012) your employer must, broadly, make a decision to dismiss you that is fair and undertake a fair procedure in dismissing you; if your employer does not take such steps then you may have a successful claim for unfair dismissal.

If your employer has concerns about your performance at work then it should generally take the following steps to dismiss you in order to avoid a successful unfair dismissal claim: any minor concerns should be dealt with through day-to-day management and, with regards to any formal concerns about your performance it must undertake an assessment to determine whether any formal capability procedure is necessary; it must (among other things) inform you of the reasons why it believes that you are allegedly underperforming; and allow you to comment on any alleged underperformance at a formal capability meeting. Your employer should also provide you with reasonable training to allow you to improve your performance, undertake regular reviews of your performance with you, and give you a reasonable time period in which to improve.

Your employer may, prior to the start of the capability process, during the capability process, or after the conclusion of the capability process, offer you what is known as a “settlement agreement”: this is a contract (regulated by statute) by which you generally agree not to pursue certain claims against your employer in return for various benefits (financial or otherwise). Whether the terms of the settlement agreement are fair must generally be measured by two considerations:

  1. Whether, from the perspective of your legal adviser, the value of the financial compensation and other terms of the agreement are reasonable, taking into account the circumstances of your case; and
  2. What you wish to derive from the settlement process

It you have been offered a settlement agreement and are researching whether what you have been offered is fair (and have therefore come upon this article) it is, unfortunately, not possible in this article to offer you advice on whether the terms of your specific settlement agreement are fair – it is advisable that you consult one of our solicitors (or indeed another firm of solicitors) in order to discuss the circumstances of your situation with them (your employer will normally offer to pay fees of between £350 plus VAT and £500 plus VAT for the purposes of you taking advice on the agreement). So, if you’ve been offered a settlement agreement get in touch with us by giving us a call on 020 3397 3603 or email us on enquiries@redmans.co.uk

 

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

    4.79 Average

    274 Reviews

    Mary B

    I was very happy with the work Chris did for me. I believe with his help I secured a more favourable outcome both financially and in terms of clauses contained in the legal agreement I ultimately signed. I had utmost trust and confidence in the advice Chris provided throughout. Chris kept me informed at every stage and I found him very efficient at bringing matters to a conclusion without unnecessary delay.

    Posted 8 hours ago

    Mark M

    I found Redmans very easy to work with. Mel was very responsive, her advice led to an improved settlement. . Recommended.!

    Posted 3 days ago

    Anonymous

    Fantastic service. I would recommend Redmans to anyone who needed a Solicitor. The communication was second to none and consistent clear guidance was given.

    Posted 5 days ago

    Anonymous

    Everyone I dealt with at Redmans were professional, empathetic & always responded promptly and helped make the transition as smooth & efficient as possible for me. If you need legal advice, don’t hesitate & contact the team.

    Posted 1 week ago

    Anonymous

    Sacha was incredibly helpful and professional. Timely and accurate advice at a time I most needed it. I was extremely impressed and grateful.

    Posted 1 week ago

    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 weeks 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 2 months 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 2 months ago

    Sanja K

    Very efficient and professional service.

    Posted 2 months 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 2 months ago

    Karen T

    Great service. Thank you.

    Posted 2 months 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 2 months ago

    Shanine M

    Excellent service, thank you so much!

    Posted 2 months 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 2 months ago

    Gayle B

    Excellent company very professional would definitely recommend

    Posted 2 months ago

    Alex K

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

    Posted 2 months ago

    Anonymous

    Great job done on my employment law

    Posted 2 months ago

    Dominica S

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

    Posted 2 months ago