When your employer offers you a settlement agreement, it’s natural to wonder whether you need legal help. After all, if it’s straightforward, can’t you sign it and move on? The short answer is: you absolutely should get a solicitor involved, and here’s why.
Understanding What You’re Signing
Settlement agreements aren’t like ordinary contracts. They’re legally binding documents that typically mean you give up your right to take your employer to an employment tribunal. That’s quite significant when you think about it.
Even if the agreement looks simple on the surface, there might be clauses that affect you down the line. A solicitor can spot potential issues that you might miss, such as:
- Restrictive covenants that limit where you can work next
- Tax implications you hadn’t considered
- Pension rights that aren’t being properly addressed
- References that could be worded more favourably
The Legal Requirement
Many people don’t realise that for settlement agreements to be legally valid, you must receive independent legal advice. Your employer has to contribute towards your legal fees, usually between £250 and £500, though sometimes more for complex cases.
This isn’t just a formality. The law requires this protection because settlement agreements involve you waiving significant employment rights. Your solicitor must confirm they’ve explained what rights you’re giving up and the implications of signing.
What About “Simple” Settlements?
You might think your situation is straightforward, perhaps you’re leaving on good terms with a small payout. But even simple agreements deserve proper scrutiny.
Consider these scenarios:
- Is the settlement figure actually fair for what you’re giving up?
- Could you be entitled to more based on your circumstances?
- Are there any ambiguous terms that could cause problems later?
- Have all your entitlements been included (unused holiday, bonus, commission)?
A solicitor who specialises in employment law reviews these agreements daily. They know what’s standard, what’s generous, and what’s trying to shortchange you.
The Peace of Mind Factor
Beyond the legal technicalities, there’s real value in having someone in your corner. Leaving a job, whether voluntarily or not, is stressful enough without worrying about whether you’ve made the right decision.
Your solicitor can negotiate improvements to the agreement. They might secure a better reference, more money, or remove restrictive clauses. Since your employer is paying for your legal advice anyway, you’ve got nothing to lose.
Making Your Decision
Whilst the agreement might seem simple to you, employment law is nuanced. What looks like a generous offer might actually be less than you deserve. What appears to be a harmless clause could restrict your career options for months.
The bottom line? Since your employer covers the cost and it’s a legal requirement anyway, there’s simply no good reason to go alone. A solicitor’s review typically takes a few days and could save you from costly mistakes or help you negotiate a better deal. That’s not just sensible, it’s essential.
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