Settlement agreement: negotiating a better deal
Settlement agreements (formerly known as compromise agreements) are fairly common when leaving your employment, but whether you are getting a fair deal or not is a complex question.
Right settlement agreements and negotiating yourself a better deal.
If you're watching this you've probably either got a settlement agreement document or you want one,
and if you've got one then you're wondering maybe you should get a better deal.
Or in if you don't have one obviously if you've got a bit more of a barrier to get over which is getting one in the first place.
Now, you probably leaving your job with uh a slight...... slightly unusual scenario going on.
You've probably been badly treated in some way, shape or form that's what these are for, right?
What are you going to do about it?
Well you need to get solicitor to sign your settlement agreement in order to make it legally binding, everyone knows that.
There if a fee in the document itself you know normally a few hundred pounds -
which your solicitor will charge your employer directly for their fee for reviewing and signing it.
Now don't be fooled into thinking that that's going to be enough to cover off that solicitor actually negotiate on your behalf.
You might get sort of saying to you, yeah for that fee we'll actually contact them,
and we'll pick up the phone or we'll drop them an email and ask for a better deal.
But you won't really get a full negotiation out of that because it's not really worth their time.
So, what you want to do is really get yourself instruct ...... instructed a solicitor on a..... on a no-win no-fee on a percentage basis,
so that any um you know any amount that they get you over and above what you've already got.
Then they're going to charge your percentage off that.
That will incentivize your solicitor nicely or you can do it yourself.
It's a bit more difficult obviously if you've not done it before but the principles are still the same.
So, you need to get yourself um in a situation where you're talking directly with HR, with their lawyers,
you need to set out your um..... your strong points preferably in writing and without prejudice letter or email.
You can read a bit more about without prejudice and letters and emails on the site here,
and read a bit more about evidence because you want to present your case and you know in the strongest possible way so evidence is going to help you there.
And there is a couple of tips to look out for is that
firstly it's a classic tactic for employers to give you an offer and put a deadline on it.
And say right, if you don't accept this offer within...... often it's a very short period of time like a couple of days or it could be a week,
then we will withdraw that offer and you know uh you won't get any kind of deal at all.
Don't be um put off by that, normally that is just a....a bluff.
When I say normally I mean
They've done the maps normally, they've worked out in a scientific way what the value is of you know parting company with you
and they're happy to pay and that amount.
So, in order to get rid of you they've..... they've...they've done that math, so why would they then you know reduce that zero?
Especially if you're working for a big company that almost always never happens.
The only time that you might ever see that is if you're working for a one-man band and the boss is a bit erratic or a bit unpredictable.
But they've done the maths, okay?
And they're just putting the pressure on you telling you about that deadline in order to make you accept the deal.
So, I would take control of that situation, let the deadline run out or go back with a....a counteroffer you know just before the deadline.
But certainly aim a bit higher than you want..... than you actually want to settle for.
And then don't forget about the things to um....to add in there like tax efficiency, a reference, possibly a confidentiality clause
and maybe think about what you can offer them like a handover or finishing off some projects.
So, you know perhaps even a gagging clause depending on whether it's a whistle blowing case for example.
So, definitely read a bit more about negotiating settlement agreements on the site here,
and that's all that we do we don't actually do anything else.
So, you know this..... the whole site dedicated to that subject, so uh have a read and see what you think