An employer may issue a Settlement Agreement to an employee in a variety of circumstances: at the end of a redundancy process, as a means of compromising a dispute, where there are disagreements about performance or conduct, or where trust and confidence have simply broken down between the parties.
For a Settlement Agreement to legally bind you, you must obtain independent legal advice as to its terms and effect, and your employer will insist that you do so. For this reason, it is usual for your employer to offer a contribution towards your legal fees.
There are likely to be tax implications in relation to any termination payments, and the Settlement Agreement will almost certainly contain a tax indemnity that places the liability for any excess tax squarely on you. Our highly experienced lawyers can guide you through the complexities and provide you with clear and straightforward advice.
In addition, we can help you negotiate the settlement package and advise you on such matters as references, announcements, bonus entitlements, share options, pension payments and benefits.
We are usually able to see you or arrange to discuss the matter by telephone at short notice.