Key information that you must know about settlement agreement in London

Earlier referred to as Compromise agreements, settlement agreements are offered and used for many different reasons. Settlement agreement London is used to resolving grievances, disciplinary issues, or accusations on a party of unfair treatment or for a long absence from work due to illness.

Since a settlement agreement is legally binding, and there are many legal jargon and technicalities, it is advised to hire a litigation solicitor London, if you live in London. There are many sections to consider while preparing a settlement agreement:

• Your legal rights – if at all you may make an “unfair dismissal claim” in the future

• Your work contract – there are some rights you have as an employee and entitled to benefits such as health cover, bonus, commission, and an advance notice period.

• If there is a possibility of a claim at the employment tribunal.

• Your possibility to get another employment opportunity after your dismissal, how much time would you need to get another job, and the situation of the field of occupation and job market for an employee in your position. 

• The financial package you are getting after the agreement. Do you get tax free ex-gratia amount, are there conditions you are bound to, and chances of getting a better deal?

There are many employees who do not care much and just sign any contract presented to them. They feel that the employer is in authority so they can do what they want. But it is better to get professional help to negotiate a better deal especially when you can.

You are not bound to sign the agreement unless you are satisfied with the terms. You can always refuse.

Settlement agreements come in a standard pattern. The agreements are created by authorities and incorporate various clauses being employed. If you decide to agree, you will be subject to those clauses and have rights to make any future claim.

There is always the question of how much money that can be offered to the client. This depends on a number of factors like your salary amount for 2-3 months, and other entitlements and terms in your employment contract.

The reason for this is that companies often compare the costs of defending an employee’s claims at the tribunal and paying the employee benefits by settlement. They always choose the one that costs them less because even if they have a winning case, it costs a lot to defend their claim at the tribunal.