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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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    312 Reviews

    Anonymous

    I have been very pleased with the support I got from Redmans Solicitors on my case with my employer. Caroline has always helped me to put things in perspective and showed me different scenarios ultimately to help me taking the right decision. She was very professional and always available when I needed, and at the same time also emphatic which I found also really important to establish a strong relationship. Will definitely recommend!

    Posted 1 day ago

    Anonymous

    Prompt and efficient response to my enquiries. Excellent negotiating skills with my employer which considerably improved the terms of my settlement agreement.

    Posted 1 day ago

    Anonymous

    Very quick and professional service , Rana was very helpful

    Posted 2 days ago

    James G

    Very professional, knowledgeable and kept me informed at every stage of my case. I would highly recommend Redmans.

    Posted 3 days ago

    Pravina P

    Chris was really good and help solve my issues with current company. I would recommend him to anyone.

    Posted 1 week ago

    Paul L

    Sacha was extremely helpful in my matter. I would not hesitate you use Sacha or Redmonds again. Everyone was very helpful.

    Posted 2 weeks ago

    Monique N

    I had Mel Chin helping me with a settlement and she was very professional and reliable throughout my case. Mel provided me with a good understanding of what was happening and gave suggestions on routes I could take. My case was resolved and closed promptly although the opposing side were very difficult to deal with. A very big thank you to Mel and Chris.

    Posted 2 weeks ago

    Jackie C

    My first ever experience needing the services of a solicitor; cannot speak highly enough of Mel and Chris’s personable, reassuring and straight to the point advice in dealing with my settlement agreement. They put me at ease during an extremely stressful time. I am equally as happy with the outcome, as l am their professional services.

    Posted 2 weeks ago

    ""

    Really happy with the service. All very efficient. Mel rattled through things very fast, however was great whenever I needed to stop and ask a question! Would definitely return to Redmans if I ever needed Legal advice.

    Posted 3 weeks ago

    Peter F

    Very helpful and clear advice, would highly recommend.

    Posted 3 weeks ago

    William A

    Second time I have had to use Redmans. They did not disappoint. They are fast , efficient and friendly. I have already recommended them to friends and colleagues. I hope I dont have to use them again but if I have to , they are the solicitors for me.

    Posted 3 weeks ago

    Fleeta C

    Great service with tantastic communications. The solicitor responsible is extremely knowledgeable and was responsible for bringing a timely and desired solution.

    Posted 3 weeks ago

    Veronica M

    Extremely helpful, starting from a request for advice at very short notice, to dedicating time for me to understand and review all documents thoroughly.

    Posted 3 weeks ago

    Sophie R

    Very efficient and professional service. Chris was very empathetic, knowledgeable and personable. Highly recommended.

    Posted 4 weeks ago

    Melanie M

    Very happy with the detailed advice provided from Redmans. They also helped me to secure a higher settlement than originally offered by my employer and were extremely diligent. I first spoke with Chris at relatively short notice and then Sacha dealt with my case. Would definitely recommend and use again in the future if needed.

    Posted 4 weeks ago

    Anonymous

    Redmans helped me with a work related issue, which was resolved quickly and professionally. I would definitely recommend this company.

    Posted 1 month ago

    James F

    Great people, really friendly and professional helped with everything that I needed.

    Posted 1 month ago

    Anusha S

    My case was handled by Sacha who was very thorough and helped me to achieve a good outcome with my employer. Sacha was very personal, professional and helped me during quite a stressful time, so I am hugely grateful to her and to Redmans. This was my first time engaging with a law firm so I wasn't sure what to expect but I can definitely say that it was a good experience overall and I ended up better off due to having the help of an experienced and proactive solicitor on my side.

    Posted 1 month ago

    Diane P

    So grateful that I contacted Redmans to deal with my Redundancy Agreement. Everything from the initial call to the completion of the matter was professional, efficient and effective. I was listened to, had everything explained simply and kept informed of every step. I received super advice and the costs were very competitive. I would highly recommend them to anyone seeking similar help. First class service - thank you

    Posted 1 month ago

    Chris L

    It was a very efficient and effective service - Would recommend.

    Posted 1 month ago

    Anonymous

    Exceeded my expectations. Very professional and proactive. I highly recommend them.

    Posted 1 month ago