Case study - settlement agreement

Background

Our client‘s employer was going through a restructure. Our client’s role was identified as potentially being redundant. Staff were offered the option of taking voluntary redundancy, which was subject to signing a Settlement Agreement. This formally records the end of the employment and enhances the employee’s compensation if they agree not to make a claim against the employer. Our client had been provided with a settlement agreement, and needed to take legal advice on the wording (a settlement agreement is only valid and binding if the employee has been advised on it by their own solicitor).

Client objectives

To receive expert advice on the agreement within a timely fashion, as the offer of voluntary redundancy was time-limited. This included an initial check of the Agreement and a discussion with the client about the level of compensation offered – it was more generous than what could have been provided in the circumstances, and the client was happy to accept the offer. There was then a final signing meeting.

Support we provided to our client

We opened a file quickly and gave advice on the Settlement Agreement within 48 hours of that. Our solicitor was very experienced with these documents, which ensures a high degree of reassurance at a stressful time. The solicitor arranged a telephone meeting and then both the client and the solicitor signed the document. Our solicitor scanned in the Agreement and sent it to the client’s employer for their signature, then sending around the completed document, and finally invoicing the client’s employer direct.

Resolution

In line with the Agreement, the client received a significantly enhanced payment of compensation within 21 days of their employment terminating. Our team invoiced the employer directly, so the advice was not only effective but also free from the client’s perspective.

Action

We can often open a file within 24 hours for a client who needs prompt advice on a Settlement Agreement.