Helping you to negotiate a fair settlement agreement
Why choose Fletcher Day?
At Fletcher Day, we provide fast, efficient, and cost-effective employment law advice to help negotiate your settlement agreement (also known as compromise agreement).
Whether you are looking to sign your settlement agreement with as little fuss as possible or aiming to maximise your financial termination package, our specialist settlement agreement advice service is tailored towards meeting your individual needs.
We pride ourselves on our commercial, but friendly down to earth approach. We understand the personal impact on you of being asked to sign a settlement agreement. We guide you through the process carefully at what we understand is often a difficult and stressful time; providing both advice and reassurance at every step of the way.
Call Cyril Dennemont now on: +44 (0)20 7870 3873.
The benefits of using Fletcher Day:
- A free initial no obligation telephone consultation
- A same day face to face consultation wherever possible.
- We endeavour to work from the fees paid by your employer
- Competitive fee structure
- Commercially focused advice from our team of highly experienced lawyers
- We cater for enquiries from all geographic locations
Our short helpful guide to settlement agreements
What is a Settlement Agreement (also known as compromise agreement)?
A settlement agreement is a legally binding agreement between an employer and employee to settle a claim or refrain from instituting or continuing with legal proceedings in relation to an issue arising out of their employment or its termination. From an employer's viewpoint it gives them the comfort of knowing an employee will not take any further legal action in relation to any dispute, whether potential or otherwise. From an employee's perspective it gives you the comfort of knowing your employer is legally obliged to pay you the settlement sum being offered.
Is a settlement agreement the same as a compromise agreement?
Essentially, yes. Although the government renamed compromise agreements to settlement agreements at the end of July 2013, they are to intents and purposes the same thing. They have the same legal effect requiring you to take legal advice on them.
What is the effect of signing a settlement agreement?
By signing a compromise agreement you are effectively giving up any claim you may have against your employer arising out of your employment and its termination.
Why do I need to take independent advice on a settlement agreement?
Your employer needs you to take independent advice on the terms and effect of a settlement agreement before it will be considered legally binding.
Do I have to pay tax on the money I receive?
This is a complex legal question in respect of which specialist legal advice ought to be obtained. Generally speaking, any sums owed to you under your contract of employment, such as wages, holiday pay and bonus will be subject to tax in the normal way. Any redundancy payment, compensation for loss of employment or injury to feelings or amount that can be treated as damages can be paid tax exempt up to £30,000. We provide this advice as part of our settlement agreement service.
Will a solicitor charge me for their advice on a settlement agreement
It depends. In most cases, your employer will agree in the settlement (compromise) agreement to contribute an amount up to a certain level (typically £350 - 500 + VAT) towards your legal fees of having to obtain legal advice on the meaning and effect of your settlement agreement. This costs contribution is sometimes sufficient for us provide you with the required legal advice, meaning that you won't have to pay anything towards our fees, assuming you are happy with the settlement amount being offered. We will invoice your employer directly for payment. However, on some occasions your employer’s contribution towards our fees is insufficient and you will be required to pay the difference. We will advise you of this at the outset.
Where you are unhappy with the settlement amount being offered to you and want us to act on your behalf to try to negotiate an increased level of compensation, we always try to pass on our additional fees in carrying out such additional work directly to your employer wherever possible by seeking an increase to the employer's costs contribution provided for in the settlement agreement itself.
When will I be paid the settlement sum due under the settlement agreement?
Normally only after you have taken independent advice on it and you have signed the settlement agreement and your advisor has signed the certificate attached to the settlement agreement confirming they have advised and both are returned to your employer.
What our clients say about Fletcher Day
"Cyril advised me through navigating my settlement agreement. I found his support thoughtful, responsive and astute in working through the various clauses and options. I would certainly seek out his counsel in future if the need arises again"
"Fletcher Day handled my recent settlement agreement. That the process was smooth and painless was due to his clear guidance at each stage. Our face to face meetings were friendly as well as helpful. In general I felt I was well represented and was very satisfied with the outcome. I have since recommended Cyril's services to two of my colleagues”.
"Cyril Dennemont was straight forward, responsive and very knowledgeable. Always calm and considered, a great lawyer to have on your side and a delight to work with."
For more information or to arrange a free, no-obligation discussion about your circumstances, please make an enquiry or contact our employment law team on +44 (0)20 7870 3873.