Asking for a Settlement Agreement

Your employer just mentioned the words “settlement agreement.” What does that mean? How will this affect you? What do you need to know? Don`t worry; Then you`ve come to the right place. We hope to give you all the information you need about settlement agreements by answering the questions we are asked most often. You may be unhappy in your job and just want to leave or something happened, which means you want to seek mutual agreement on the terms of your departure and the release date. Do I need legal advice on the settlement agreement? Settlement agreements are voluntary, legally binding contracts that are usually offered by an employer to terminate an employee`s contract in a mutually beneficial manner if the alternative would involve dismissal or recourse to the case in an employment court. However, it is also possible that as an employee, you may ask your employer for a settlement agreement in order to terminate your employment contract. This is usually the case in circumstances where your employment relationship is irretrievably severed due to an unresolved dispute. It`s important that you understand everything in the agreement, and if there`s something you can`t meet (or a clause you`ve already violated), you`ll need to discuss it with your lawyer. Can a settlement agreement be withdrawn or cancelled? Another important tip is to make sure you have the right lawyers to act for you. If you don`t trust your lawyer`s abilities, always remember that you have the right to change lawyers if you wish. At Truth Legal, we have extensive experience in successfully negotiating settlement agreements. Your employer will discuss with you what should be in the agreement, either in person or in writing. Settlement agreements are agreements that can be used to waive any work claims you may have against your employer and that are between you and your employer. Usually, this involves the end of your employment relationship and a sum of money is paid to you to settle (give up) your rights at work.

In addition to the written terms for settling claims and funds payable to you, the settlement agreement may include other terms, e.B. You and the employer promise to keep the agreement confidential and not to make derogatory comments about each other. Your reasons for negotiating a settlement may include factors that an employment court would not consider. This may include: The settlement agreement is a legal contract between you and your employer – you both have to abide by it. Your employer probably wants you to keep the agreement confidential. In general, however, when you sign a settlement agreement, you should assume that it will draw a line under everything that has happened between you and your employer and that you will not be able to make any claim against them. In addition to special claims, employers will also try to make sure that there are no other possible claims you may make against them in the future. Model or previous settlement agreements often include a list of all known types of employment rights, even those that might not apply to you. For example, most agreements retain language regarding pregnancy and maternity, regardless of your gender.

You could refer to the rights of part-time workers and the right to be consulted on dismissals, even if you have never been in such situations before. The CASA Code of Practice on Employment Settlement Agreements recommends that employees have at least ten days to review a settlement offer. Although this is not actually required by labour law, all employers should take it into account. This is what litigants want employers to understand about effective settlement agreements. Settlement agreements are only legally effective if the employee has received independent legal advice on the terms and effects of the agreement. For example, a settlement agreement is a good opportunity to make a fantastic referral with your employer. There is no law requiring an employer to provide a reference. But even if your employer can`t or won`t pay you more money, it doesn`t cost them anything to give you a positive reference. This may then be annexed to the Agreement.

The agreement should also clarify that if your former employer is asked to speak orally about you or fill out a checkmark form about you, the information they will provide you will be no less favourable to you than the agreed wording. Some employees are embarrassed to ask their employer for more money. You don`t want to ask for a large amount of money, even though it`s reasonable. This may be due to: waiver of certain claims. Some claims cannot be disclosed in a settlement agreement under the California Labor Code. For example, an employee cannot release their claims to certain wages and benefits, including: Given the particular nuances of the terms and conditions of work, employers should work with a lawyer to ensure that the settlement agreement is enforceable. Settlement agreements can also be used to terminate your employment relationship and settle an ongoing claim you make in a court or labour court. ACAS stands for Advisory Conciliation and Arbitration Service. ACAS does not need to play a role in your settlement agreement, but it does provide employers and employees with a free arbitration and telephone consultation service. Your employer will usually pay for you to receive independent legal advice. Because if you sign a settlement agreement without first receiving independent legal advice, you can always go to an employment court.

ACAS can settle labor court claims (and potential claims) with a special type of agreement called COT3. Parties to a COT3 do not have to be represented by lawyers. Apart from a settlement agreement, a COT3 is the only other legally effective means by which an employee can waive his or her labour rights. ACAS agreements are generally much simpler and less comprehensive than settlement agreements. There are restrictions on the types of claims that can be settled with an ACAS agreement. For this reason, employers often prefer to use settlement agreements. A settlement agreement could involve your employer promising to pay you money, stop treating you illegally, or both. Instead of trying to negotiate the settlement yourself, we recommend asking your lawyer to help you.

Many lawyers offer a “No Increase at No Cost” agreement with clients when negotiating an improved settlement. If your boss calls you into a room, sits you down and offers you a settlement agreement, they may want an immediate response. Our advice is that you ask for a few days to think about it. This gives you time for: It is important that the agreement reached is fair. Each case is different; One person may be looking for money, while another person needs a good referral or even reinstatement to their job after they are fired. Most settlement agreements lead to a “clean break” – where you separate from your employer – but sometimes the employment relationship continues afterwards. Here are some examples: Some employers offer outplacement support. This is usually a guide to finding another job, help with creating a resume, and help with job interviews. The goal is to prepare you for the job market. You may want to ask your employer to include it in the agreement.

If you are considering applying for a settlement agreement at work, please contact one of the following numbers to speak to one of our experienced and supportive labour lawyers: At the same time, think about your worst-case scenario. What is your conclusion in favour of an acceptable agreement? If you are able to answer these questions, you will be much better able to begin the process of negotiating the settlement agreement. If you seek legal advice about a settlement agreement, but decide not to accept the terms offered, you may have to pay all of your legal fees. Your employer`s obligation to contribute to your legal fees is only valid if you sign the settlement agreement. Your lawyer will explain the consequences. Even if the parties agree that your settlement payment is not taxable, it is common for employers to request “tax compensation” under the settlement agreement. .