Settlement agreements are commonly used in employment matters, where the employer and the employee reach specific terms that prevent the employee to address a claim to a local court. However, this can be done as long as the employer will state that he or she will provide a compensation to the employee, instead of addressing the claim to a local court.
Considering that this type of agreement must reflect both the rights and obligations of the employer and the employee, it is best to request legal advice and representation from settlement agreement solicitors in Manchester. Our team of lawyers has an extensive legal experience in drafting this type of agreements and can also negotiate the terms on the benefit of our clients.
Table of Contents
What are the characteristics of a settlement agreement in the UK?
Persons who will be offered settlement agreements from their employers should definitely receive legal advice from our settlement agreement solicitors in Manchester. This is highly advised, given that this type of document should contain specific provisions, which are mandatory in accordance with the applicable law. Our lawyer in Manchester will present below some of its main characteristics:
- the agreement has to be completed in writing and has to refer to specific employment matters which are negotiated between the employee and the employer;
- the employee needs to receive legal advice from settlement agreement solicitors in Manchester, so that he or she can make an informed decision with regards to the consequences of the terms included in the document;
- the document must contain clear information on the settlement amount that the employee will receive;
- it must also contain the conditions under which the settlement can take place;
- information on the legal advisor who has offered legal advice on the respective settlement agreement.
What is the main data on employment disputes in the UK?
Employment disputes in the UK are fairly common and the impact of the Covid-19 pandemic had a negative result on litigations between employers and employees. Employment disputes in the UK are generally related to the termination of a work contract, age discrimination in the work environment, disability discrimination and other similar matters.
For those who are not the recipients of a settlement agreement and who need legal representation on any of the above mentioned, our Manchester law firms remain at your disposal for legal advice and legal representation in front of the court. We will present below some of the work related claims and work disputes information:
- according to the Ministry of Justice, citing data from the Tribunal Statistics Quarterly, in the period 2019-2020, the highest claim for age discrimination was of GBP 39,000;
- in the same period of time, the highest award decided by a court was of GBP 266,000, in a claim related to disability discrimination;
- in 2018, the UK lost a total of 273,000 working days due to matters related to employment disputes – although this may seem like a large number, it actually represents one of the lowest values since 1891, when the employment records were started in this country;
- the highest rate of working disputes, accounting for 66% of all disputes, was represented by disputes in the education sector;
- if you will be required to sign a settlement agreement, please be aware that your employer is required to pay for you the legal fees charged by settlement agreement solicitors in Manchester, which generally vary between GBP 250 – GBP 500.
Are employees required to sign a settlement agreement in the UK?
If you are the employee of a company and if you receive a settlement agreement that will provide the conditions for various legal situations in which the parties may need to address to a court, but you do not agree with the terms of the contract, you are under no obligation to do so.
From a legal point of view, the contract becomes legally binding only after the employees have receive legal advice from settlement agreement solicitors in Manchester; you should know that the document is generally offered prior to the termination of an employment contract. It can represent a suitable document when there are legal grounds for terminating the employment based on disciplinary matters or redundancy matters.
It is generally used as way of avoiding multiple legal complications that can arise when a contract is terminated, but we highly recommend you to contact our lawyer in Manchester for in-depth information if you have been offered a settlement agreement. You can also address to our Manchester law firms if you are an employer who wants to know when it is most suitable for all parties to sign this type of document.