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redmans-blog-q&aChris Hadrill, a specialist employment solicitor at Redmans, answers the question:

“What are the requirements for a valid settlement agreement?”

For a settlement agreement to be valid, certain conditions have to be complied with:

  1. The agreement must be in writing;
  2. The agreement must relate to a “particular complaint” or “particular proceedings” (for example, reference to an unfair dismissal claim (or other forms of claim) or a particular Employment Tribunal claim number);
  3. The employee who is entering into the settlement agreement must have received legal advice from a relevant independent adviser on the terms and effect of the proposed settlement agreement and the effect of the settlement agreement on the employee’s ability to pursue their rights before an employment tribunal;
  4. The independent adviser who is advising the employee must be covered by a contract of insurance, or professional indemnity insurance, covering the risk of a claim against them by the employee in respect of that advice;
  5. The settlement agreement must identify the relevant independent adviser; and
  6. The settlement agreement must state that the conditions regulating settlement agreements under the relevant statutory provisions (whichever apply in the circumstances) have been satisfied

Further, if the independent adviser is a solicitor then they should hold a current practicing certificate.

If one or more of the above-listed criteria are not met then the settlement agreement will not be statutorily binding and, therefore, not a valid settlement agreement.

When you discuss your settlement agreement with your adviser (whether this is a solicitor, barrister, or otherwise suitably-qualified person) you should ask them the following questions:

  1. What are the “proceedings” that are being settled under the settlement agreement? Sometimes this will be obvious, but your legal adviser should advise you on the potential claims that you have in the circumstances and, therefore, what you are settling
  2. Is your legal adviser independent on the other party or parties to the settlement agreement? This should normally be the case, as your legal adviser should carry out a conflict check prior to agreeing to advise you on your matter, but it’s worth asking anyway
  3. If your legal adviser is a solicitor, what qualifications does he hold, is he an expert in the field of employment law, and what experience does he have with settlement agreements?
  4. What is the effect of the settlement agreement on your ability to bring a claim in the Employment Tribunal or any other courts?
  5. Is your legal adviser covered by a contract of insurance or, specifically, professional indemnity insurance? All solicitors should be covered by a contract of  professional indemnity insurance but it is always worth checking.
  6. Does the settlement agreement state that the conditions regulating settlement agreements under the relevant statutory provisions are satisfied?

Chris Hadrill, a specialist employment solicitor at Redmans Solicitors, commented: “If you want to enter into a settlement agreement to settle your employment tribunal claims then you must ensure that you get appropriate and proper legal advice, otherwise you may find that your settlement agreement is not valid or enforceable.”

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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    371 Reviews

    Jonathan L

    The service I received was friendly and professional. I appreciated the timely communications and Mel was always available for any questions I had. I'd definitely recommend Redmans and will use them in a heartbeat should the situation arise again.

    Posted 4 days ago

    Glyn B

    Provided a great service, covered all my requirements

    Posted 4 days ago

    Fidel A

    Redmans Solicitors recently helped me navigate a recent employment termination settlement agreement. Chris Hadrill is very professional and you will be in good hands with him. I score Redmans 4 out of 5 because things had to move fast and felt the team member assigned to my case wasn't very responsive at times. Having said that, I was very happy with the outcome and have no hesitation in recommending their services.

    Posted 5 days ago

    Nigel A

    Chris Hadrill is hugely impressive - the right blend of assured calm and savvy professionalism. I've already recommended him to friends and family.

    Posted 6 days ago

    Matt O

    I was hugely impressed with the ease of being able to work with Redmans Solicitors and their professional approach. Mel was really clear around the process, and costings required and I felt comfortable throughout. I would certainly recommend.

    Posted 6 days ago

    Bryan G

    Great response, and also happy to assist

    Posted 6 days ago

    David L

    I was made a settlement offer by my employer to terminate my emplyment early. Redmans helped me understand the offer, and ensured that it was fair for someone in my position. They made a very stressful situation much easier. Excellent service.

    Posted 1 week ago

    Anonymous

    I can highly recommend Redmans. The service was professional and prompt and I would not hesitate to use them again. Thanks

    Posted 1 week ago

    Anonymous

    Overall I am satisfied with the performance from Redmans. The reason I have given 4 stars is that I had quite a lot difficulty in contacting the representative which was initially nominated for me. However, when I contacted Chris instead, he was excellent over the phone and secured a great outcome in short order. I would recommend Redmans Solicitors.

    Posted 1 week ago

    Anonymous

    Chris and Redmans were a great help. Effective and efficient, quick response from my first enquiry and then straightforward and attentive throughout with ultimately a positive outcome. I will use them again and recommend them.

    Posted 2 weeks ago

    Marie P

    Great service, quick responses, good advice and all in a no nonsense, no jargon manner. Would definitely recommend.

    Posted 2 weeks ago

    Anonymous

    Rana was amazingly thorough and professional!

    Posted 2 weeks ago

    Anonymous

    I am extremely happy with the legal advice I was provided with. My case was resolved to the best of my expectations. Thank you very much for your professional help.

    Posted 2 weeks ago

    Shahzad R

    Chris and his team were excellent. They provided sound advice and consultation that resulted in more cash than was offered. Would definitely recommend.

    Posted 2 weeks ago

    Sanjay B

    I would like to take this opportunity to thank Mel Chin, for all her support during my settlement process. Where she provided a professional service and was understanding. I would confidently recommend Redmans Solicitors to my friends and family. Thank you and wishing you all a Merry Christmas.

    Posted 1 month ago

    Paul O

    Excellent response time and communication during my dealings with Redmans

    Posted 1 month ago

    Gil T

    I don’t normally write reviews, but thought it was time on this occasion. Just wanted to say that I highly recommend Redmans - especially Rana Tandon, who helped me navigate around my employment contract. Rana was meticulous and thorough and all over my needs. Would I use Redmans again ? ..absolutely

    Posted 1 month ago

    Stephanie D

    Very thorough and professional service. I was very nervous about my employment case, as I had never dealt with anything like it before. However, the solicitors who handled my case made sure I understood everything. I was never kept in the dark and Redmans kept me constantly informed about what was going on with my case. I would definitely recommend Redmans Solicitors

    Posted 1 month ago

    Richard S

    Chris and Sacha were great throughout the entire process. Chris was very helpful once the initial discussions with my company began and before we agreed there was a case. Sacha was very responsive, patient and helpful throughout ensuring I felt I had the right information to make the best decision on next steps. A close friend and wife have both used Redmans in the past few years for unfair dismissals and the service continues to be first-class and I would strongly recommend them again. They definitely help reduce the anxiety that comes with uncertainty around new processes and situations. Thank you!

    Posted 1 month ago

    Jianya

    Very nice and patient went through the whole document with me.

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    Susan L

    Very helpful and led me through the redundancy process.

    Posted 1 month ago