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Settlement Agreements can be extremely stressful and taking early advice is key.

Lawson West Solicitors offers free initial discussions about your circumstances and any settlement offers you may already have received. As an experienced employment settlement agreement solicitor, we have a strong track record of negotiating significantly higher compensation and improved exit terms for our clients when dealing with a settlement agreement. In most cases, your employer will also cover your legal fees.

If you believe you have a situation where you require free legal advice, please contact us on 0116 212 1000 or 01858 445 480. Alternatively, you can complete the free Contact Us form and we will get in touch as soon as possible.

Here are some top tips in order to obtain the best possible settlement for you:

1.  Prepare well for the negotiations

  • If you are called into a meeting and offered a Settlement Agreement, your employer may want a response straight away, but what should you do?
  • Take your time – it is our advice that you ask for a few days to think about the proposed package being offered to you. After which, you should immediately obtain legal advice, think about what you have been offered and prepare a response. It is apparent at this stage your employer does not want you working for them, so you want to ensure you get the best possible outcome for yourself.
  • It is important when considering a counter offer that what you put forward compensates for the loss of your employment and your future loss as it could take you some time to find another job. If you feel that you have been discriminated against you also have injury to feelings which should be taken into account. We would recommend that you obtain legal advice to get the best package possible.

2.  Decide on which negotiation tactics you should use

  • Where your employer is offering you a package less than you would be awarded at an Employment Tribunal, you may tactically want to tell your employer that unless they pay you more, then you intend to take this matter further to the Employment Tribunal.
  • You could take a gentler approach by presenting to the company what you have contributed to the business, the difficult situation you will be in by losing your job, and the sacrifices that you have made to your personal life that have benefitted the company.
  • Any settlement offer should be made on a ‘without prejudice’ basis or by a protected conversation. Discussions via a protected conversation are generally off-the-record which allows both you and your employer to speak freely without worrying the other party will use their words against them.

3. Think Carefully about the Offer

In the media you usually hear about large sums of money awarded by the Employment Tribunal. You should not presume that you will get the same. Negotiation depends on:

  • Your salary
  • How long you have taken to find another job
  • How long you have been employed
  • Any terms of your contract that entitles you to receive an enhanced sum
  • An injury to feelings.

4.  Consider making a counter offer

There is no harm in making a counteroffer at the top end of what you can reasonably expect. Worst case scenario is that your employer will negotiate you down. However, if you ask for too much your employer will not take you seriously.

5.  Do not ask for too little

Sometimes employees are too embarrassed to ask for more money even if it is reasonable, however do not get less than what you are actually entitled to. Ensure that you are confident, respectful and courteous in order to get a settlement which you are entitled to.

6.  Are the payments taxable?

Make sure you understand your tax position when considering the settlement offer, as sometimes you will not receive as much as you have presumed due to the taxable nature of the payment. This can be complicated, so you want to make sure that you obtain legal/financial advice in respect of this.

7.  Consider non-financial matters

In most cases, settlement is a termination payment (financial package). However, the factors that you should take into account are:

  • You could agree a fantastic reference with your employer
  • Keeping a mobile phone or having the number imported over
  • Being allowed to continue using the company car for a certain period
  • Prepare your own announcement to your former colleagues notifying them of why you are leaving
  • Writing-off holidays which you may have overtaken
  • Writing-off company loans
  • Retaining company equipment such as your laptop
  • Outplacement support
  • Classed as a ‘good leaver’ for shares
  • Extension of private medical insurance.

8.  Obtain advice at an early stage

Lawson West offers a free initial consultation where you will be able to get advice on:

  • The amount of compensation you should be receiving
  • The most tax efficient way to draft the agreement
  • Whether you have any prospect of pursuing your claim before the Employment Tribunal.

9.  Making a counter offer

After you have made an informed decision, you should make your counteroffer either verbally or in writing.

Kate Lea
Kate Lea

How Can Lawson West Help You?

Lawson West is recognised for providing a first class, national employment service. We’re listed and ranked in the Legal 500 for our exemplary team of professionals and the advice we provide.

If you want to see us face to face, we run four employment law walk-ins each week at our offices in Leicester and Market Harborough and this initial meeting with you is FREE of charge. We’ll look at your paperwork and advise on the best course of action. We can also meet with you digitally on Teams if you’re in another part of the country, in fact, we advise individuals on their employment legal needs right across the UK.

From settlement agreements, to redundancy, dismissal and disability and other types of employment dispute situation, we’re on hand to support and advise you. Please get in touch as soon as you can, as deadlines might apply.

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Testimonials from Employment Law

Great client service is at the centre of our thinking, it’s embodied into how we train and develop our staff, how we help our clients and how we advise and assist people and business owners with their legal needs.

Our Core Values are Welcoming, Confident, Supportive, Knowledgeable and Dependable and we aim for clients to have a positive experience with Lawson West Solicitors.

Evidence of our great client service can be seen in the reviews and testimonials we regularly receive. We are always pleased to receive great reviews because it means our clients are happy with the service we provide, and it shows that we deliver on our core values, we don’t just talk about them. We really welcome client feedback and hope you enjoy reading some of the latest testimonials throughout this website.

Senior Associate Solicitor Sejal Patel. ""Sejal is professional, understanding, efficient, upfront and always communicates everything in a timely manner. She is also very knowledgeable within her professional field and provided full support to me at all times. Thank you to Sejal for the understanding, support and belief in my case throughout. It has been a very traumatic time for me over the past few years and I feel that without Sejal's support, I couldn't have gone through this process to its conclusion. Thank you.""

Mr V K, Employment Client, Leicester

Sejal Patel, Associate Solicitor, Employment Law Team. ""You took on a no-win, no-fee case which dozens of firms turned down despite saying on their website that they do (this type of work)…well done Sejal. Your communication and everything was very good, very professional.""

Mr D, Employment Client, Leicestershire

Ashley Hunt, Director and Employment Solicitor Lawson West Solicitors, Leicester On a recent employment matter: ""I would like to take this opportunity to thank you [Ashley Hunt] and all your team for the help in my case. Also the conversation at the start which made us believe we had a case."" Mr A., Leicester

Mr A, Employment Client, Leicester

Sejal Patel, Employment Solicitor, Leicester ""Thank you so much for all your efforts in helping us, Sejal. Really appreciate it, we shall pass your details onto anyone that many need them now or in the future. You really go above and beyond. Thank you again.""

A Client, Leicestershire

I’ve not had this experience before, but I thought all the advice given to me was very honest.

Ms P

Attention to detail in my case was good.

Mr S

Knowledge About Settlement Agreement: Negotiating a Better Settlement