Settlement Agreement in London (United Kingdom)
A settlement agreement in London is a legally binding document that protects the employer as well as an employee. A settlement agreement (previously called a compromise agreement in the UK) is prepared or offered by an employer to an employee who has been offered a redundancy. A settlement agreement sets out your right and obligation against your employer once you sign this agreement, therefore you must be careful before signing this agreement as you surrender all your rights and cannot ever claim against your employer in the future.
A settlement agreement might involve your employer promising to pay you a sum of cash, stop treating you unlawfully or both.
What Steps to take if You are not happy with Settlement Agreement in London:
1. Remain calm and analyse the offer even if you feel like the adjuster is trying to take advantage of you.
2. Ask questions to find out how the adjuster came to the conclusion that they did.
3. Respond to the offer in writing.
4. Do not settle your claim until you have not received a detailed breakdown of the settlement agreement.
Benefits of settlement agreements in London?
The main benefits of settlement agreements are that they can be used:
• To secure financial compensation for ill-treatment at work without having to face the delays, stress and uncertainty of an employment tribunal
• To negotiate payment which is better than any statutory minimum (eg for notice period, holiday pay, redundancy pay)
• To obtain non-financial payments included as part of your settlement package (see below for more detail)
• To form the foremost tax-efficient use of a compensation payment
• To get final legal closure to an employment dispute in the fastest possible time
• To make a clean break from work before it reaches a stressful and possibly unpleasant conclusion.
So, for instance, if your employer has suggested you’re underperforming, rather than trying to prove otherwise, you’ll suggest ending the utilization on agreed terms. Performance management is stressful for all concerned, therefore an employment settlement agreement in London could also be beneficial for both the employer and employee.