Settlement agreements
Settlement agreements
This is the only area in which Kate regularly acts for both employees and businesses. Kate has substantial experience in advising employees on draft settlement agreements, negotiating settlement packages and advising on the prospects of tribunal claims, (if requested to do so). Kate is also regularly instructed to prepare settlement agreements or COT3 agreements on behalf of employer clients.
What is a settlement agreement?
A settlement agreement is an agreement in which you agree to waive or settle a claim or claims against your current or former employer in return for a payment. It is commonly used where the employment relationship is about to end but could also be used to settle an existing dispute where the employment relationship is ongoing.
Legal fee contribution
It is a legal requirement that employees or workers must receive independent legal advice on the terms and effect of the proposed agreement and its effect on the employee's ability to pursue potential claims against their employer. It is not a legal requirement for employers to pay towards the employee’s legal advice but employers commonly do. Legal fee contributions usually start at £500 + VAT and if you do not require support with negotiations or advice on potential claims, Kate can keep her fees within the legal fee contribution.
Re-affirmation
Where the parties agree settlement terms and enter into a settlement agreement several months before termination of the employment contract, there is potential for additional statutory claims to arise in the period between signing of the agreement and termination of employment which may not be covered by the employee's original waiver of claims. To address this situation, agreements sometimes provide for reaffirmation of the settlement agreement after termination of employment. Kate can assist with agreements which contain re-affirmation clauses.
COT3 agreements
There are a small number of employment claims which can only be settled through Acas. Similarly, if an employee has already lodged an employment tribunal claim, parties may prefer to use COT3 agreements to record the terms and conditions of settlement, rather than a settlement agreement.
Quick turnaround
Kate recognises that employees are sometimes keen to finalise the settlement agreement as soon as possible. Contact Kate for confirmation of current turnaround times.
