When the matter of a settlement
agreement comes up at work, you may be happy or sad that you have to leave but
you’re probably not too bothered about seeking legal advice, as most people
prefer to not rock the boat, or think that it may affect their future
employment potential. You may even be quite happy with your settlement
agreement and not see the need to hire a solicitor in Nottingham or
Loughborough. However, there are a few reasons that you need to find commercial law solicitors and Hawley
and Rodgers are here to advise.
What is a settlement
agreement?
This is a legally binding contract between employer and employee usually
used at the end of a term of employment. It can also be the agreement in place
where there is a dispute to be settled but employment continues.
How are terms of a
settlement agreement decided?
These terms should be mutually agreed between the employer and employee.
They are laid out in a written agreement where the employee agrees not to
pursue a case in exchange for a settlement payment.
Here are three valid reasons that
you should consult commercial law
solicitors about your settlement agreement.
1. To get the best deal
Whether as an employer or employee,
you want to get the best deal possible and Nottingham solicitors such as Hawley
and Rodgers can help you with that.
In order to determine the
settlement, the following will be relative:
- Annual salary
- Monthly take home pay
- The notice required by the employer
- The circumstances surrounding the settlement or
termination of employment
2. To ensure the agreement is
legally binding
There is a law in place that
protects employees and ensures that they can’t sign away their rights. Your
solicitors will ensure that you understand your rights and what you are
entitled to before you sign. The law protects the employee in this instance and
good solicitors can advise whether they should negotiate a higher payment, or
even refuse to sign. If all statutory requirements aren’t met, including the
employee receiving proper independent advice, it leaves it open for the
employee to take a case at a later date.
3. To avoid paying unnecessary
tax
If an employer has agreed to a
satisfactory settlement, it’s also important that you receive the money in the
most tax-efficient way possible. Your solicitor can re-draft the document to
ensure this. That way, the employer won’t have to pay any more money, but you
can receive the full amount. You will need professional advice in this area
though to ensure that you are following the letter of the law.
Contact Hawley and Rodgers for
advice on your settlement agreement
We are experienced in commercial
law and we are also family solicitors
in Nottingham. Contact us for legal advice on a range of matters by calling us
in Nottingham on 0115 955 9000 or 01509 230 333 in Loughborough. You can also
email us at enquiries@hawleyandrodgers.com.
