Settlement Agreements for employees
Whether it is an un-expected boardroom exit or an amicable parting of the ways with your employer, if your employment is ended unexpectedly you may be given a Settlement Agreement by your employer.
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At Birketts, we can advise you on the contents of the Settlement Agreement and even help you negotiate the terms of the package on your exit. Our team of experienced employment lawyers can advise on such issues as:
- Share options;
- Pension payments;
- Cars and other property; and
We can also advise on whether the sums offered are appropriate for the circumstances relating to your exit and if not advise on what the alternatives may be.
By law an employer will need an employee to enter into a Settlement Agreement (s. 203 Employment Rights Act Agreement) if they wish to avoid any claim being pursued against them in the Employment Tribunal by an exiting employee. In order for that agreement to be binding the employee must take independent legal advice. It is customary that employers will make a contribution towards an employee's legal fees. Those fees may or may not be negotiable but it is also something which we can advise on accordingly.
There are usually tax implications of the Termination Payment, and we can provide guidance and assistance on any obligations to HMRC.
If you need advice about settlement agreements and wish to discuss a settlement agreement in person or would like to contact our employment law team for more information on our employment law services, please click here.