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27/04/2018
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Do I need a solicitor?

The Settlement Agreement requires independent legal advice. This is to protect you.

My employers given me a Settlement Agreement have I been sacked or dismissed?

No – a Settlement Agreement is usually offered as a way of agreeing to end your employment.

What will it cost?

Usually your employer will offer a contribution to your legal costs and frequently we can deal with things within that limit. If not we will discuss the options with you at our meeting.

How much compensation will I get?

The Settlement Agreement will include a figure – it is an offer. Obviously the starting point is what your employer is prepared to offer – what we can advise on is what you might expect to receive if you were dismissed. This might include, among other things, compensation for wrongful dismissal, unfair dismissal and redundancy.

Will I be taxed on the compensation under a Settlement Agreement?

Usually the first £30,000 is exempt from taxation. Some elements like pay in lieu of notice may be taxed as normal.

Is there an alternative to a Settlement Agreement?

There may be alternatives; but these may involve negotiation with your employer or even, ultimately, referring to mediation, or applying to a Employment Tribunal.

Nondisclosure agreements – aka NDA’s – or “gagging orders”

This is an agreement prohibiting release of information to a third party. Most Settlement Agreements contain confidentiality provisions.
 
Legislation is expected to be introduced to restrict the misuse of nondisclosure agreements “NDAs” in the workplace . At present the details of this have yet to be finalised. However Settlement Agreements frequently contain detailed provisions which in effect amount to an NDA.

Under the government changes and NDA will only be possible if the person entering into it has had independent legal advice.
Any Settlement Agreement that did not comply with the new legislation would be void.

Also, as might be expected, it will not allow NDA (gagging orders) to prevent disclosure of matters involving, for example, sexual and racial discrimination.

To make an appointment regarding a Settlement Agreement call (01789) 201680 or contact  Edward Jeffery.