WSP Solicitors has a wealth of experience in employment law and prides itself on providing fair and balanced advice, exploring all options and processes available.
Employment and litigation solicitor Elizabeth Watt is based across the firm’s Stroud and Gloucester offices. She covers civil litigation, employment matters and commercial disputes and shares her expertise on settlement agreements with SoGlos.
When would a person need to use the settlement agreement service?
Settlement agreements are a legally binding document, once signed by the employer and employee, which are used to sever the business relationship.
They are often used by employers to terminate employment for a variety of reasons including where the employee has previously raised a grievance, have been on long term sickness absence or are subject to a disciplinary. They are also used following redundancies.
If an employer is considering terminating employment, early access to legal advice is crucial. We can discuss options including termination and draft settlement agreements often for fixed fees.
For employees, they need to seek independent legal advice on the terms of the agreement which is often met by the employer as, by signing the agreement, an employee waives their rights to bring claims in an employment tribunal or civil court except for enforcement of the agreement, accrued pension rights and any personal injury that they are not currently aware of which later arises.
In return for signing the agreement and waiving their rights, an employee will receive a compensation payment and an agreed reference as well as what they are contractually entitled to (notice pay, accrued but untaken holiday pay and salary to termination).
What aspects of service are you proud to provide?
No two settlement agreements are the same. We break down the legal jargon and explain it in simple terms which assists employees with deciding whether to accept the agreement.
We can also check that the payments on offer are reasonable and, if not, seek increases, particularly if the employee is a senior member of staff, have long service or there may be potential claims arising.
What kind of a difference can settlements make?
Settlements can help resolve conflict between employee and employer particularly if the employee has been signed off with stress and is being put through a disciplinary process.
By providing a settlement package under a settlement agreement it means employers do not have to be concerned regarding possible claims.
If the settlement is at the lower end, we work with the employee to ascertain their needs and seek an increase in the settlement package. They can also be the more cost effective route as taking legal action is costly, stressful and there is no guaranteed outcome.
How does WSP simplify and help smooth the process?
At WSP Solicitors, we've been offering straightforward legal advice and support to local people and businesses for over 250 years. We listen, we understand and we advise.
Our approach is practical and straightforward, enabling our clients to make the right decisions now and for the future.
Most importantly, we like to make life less complicated.
Although receiving a settlement agreement can be a shock to employees, we take the time to fully understand the background to them receiving it and, where necessary, suggest a separate meeting.
This is particularly important if the employee is nearing retirement age or is pregnant and there are potential discrimination claims because the employee waives their rights to bring claims by signing the agreement, save for the exceptions referred to above.
We assist employers with deciding to terminate employment to ensure they follow the correct process and also with drafting the agreement.
If someone is considering trying to resolve matters themselves, how would you help them to make up their mind?
Often employees find talking it through with an independent third party is enough for them to move on but sometimes they require assistance with deciding whether to accept the agreement.
We listen carefully and provide options including costs if someone is not sure whether to accept the terms of the agreement.
We can often seek increases to payments particularly when employees have long service or are in a senior position. We can also seek extensions to benefit packages or increases to pension contributions.
For employers, we listen to the reasons why they are considering termination and provide options including redeployment and offering settlement agreements.
We can offer fixed price quotes and can assist with drafting the agreement giving guidance along the way to ensure they follow the correct legal process.
If a firm is looking to make redundancies, we can assist with putting together the relevant letters and working with them to put together an attractive settlement package.
