Something unfair has happened at work – maybe you’ve been mistreated or wrongly disciplined or perhaps you’ve even lost your job. If you have a good case, you could take your employer to court. Employers don’t usually want to take that option, because it costs time and money. The alternative is for you to request a settlement agreement. How do you go about it?
A settlement agreement is a legal contract that details who will do what. It’s called a settlement agreement because you and your employer agree to settle the dispute without the need to take further action. In Northern Ireland, settlement agreements are known as compromise agreements, because you and your employer reach a compromise that you’re both happy with.
As you can probably imagine, some delicate negotiations usually have to take place before both parties reach agreement. It’s not always straightforward.
That’s where an employment lawyer (like us) can help.
Note that Paul Doran Law is always on the side of the employee in any workplace dispute. We never act for employers.
Because a settlement agreement is a legal document, you have to take independent legal advice before you sign – don’t worry, the employer will usually pay our fee.
From your point of view, you probably want your employer to stop treating you badly, recompense you for any financial losses, pay a sum in compensation, or any combination of those.
Meanwhile, your employer is likely to want you to agree to certain things, such as keeping the agreement confidential.
Step 1: Get advice before requesting a settlement agreement
Collect all the relevant documents, such as your contract of employment, staff handbook, emails and notes of any meetings, then give us a call. We’ll be able to explain the process, how much you might be able to claim, and your chances of winning.
Step 2: Enter negotiations about your settlement agreement
Attend meetings with your employer to discuss what you want and what they want. You can usually take someone with you. We can help with this stage too.
It’s important to note that these initial conversations can’t form part of the evidence if your case does eventually go to the tribunal.
Step 3: Consider your settlement agreement offer
Your employer will make you an offer. You need to decide if their first offer is reasonable. If yes, accept it. If it’s not reasonable, you can ask them to make a better offer, or you can take them to the tribunal and let the judge decide.
The best action to take will depend on many things and every situation is different – we can advise on this too.
Step 4: Reaching a settlement agreement
Get the settlement agreement in writing. In order to be valid, the agreement needs to be drawn up by an independent lawyer, include that lawyer’s name, apply to your specific dispute, detail who has agreed to what, and confirm that it meets all the rules of settlement agreements.
Further reading
For more information on this subject, you might find our other articles useful:
- What is a settlement agreement?
- Should I accept a settlement agreement?
- Settlement agreements: 6 key tips
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