If you’re offered a Settlement Agreement, it’s likely to include a termination payment, sometimes called a compensation payment or ex-gratia payment.
It’s important to get advice on whether the offer is fair and the amount offered should reflect the value of the claims that you’re giving up. Things to think about and get advice on include:
- Any potential claim you could bring against your employer?
- How likely is it that any claim would succeed at a tribunal?
- If you did succeed, how much would you be likely to recover?
The answers to these questions will affect the amount that you should expect in the Settlement Agreement. If you have a strong claim against your employer, they are more likely to give you a higher termination payment. If you don’t have any realistic claim against your employer, there’s not much incentive for them to pay you money.
Should You Negotiate?
There is no one size fits all deal. Employers will have thought about the claim that might be brought against them or simply how they want to part company. It could be you are very happy with the agreement reached or offer made and there is nothing wrong with that. Sometimes you will have issues you want to discuss to see if you are getting what you deserve and it may be appropriate to negotiate.
The negotiation strategy may involve threatening to make an employment tribunal claim if the employer doesn’t pay you more money. However, keep in mind that:
- The employment tribunal procedure is likely to take at least 6 months. If you pursue this route, you will of course need to wait much longer before recovering any money
- Employment Tribunal proceedings can be stressful and emotionally draining
- In the vast majority of cases there is no procedure for recovering your legal costs in a Tribunal from your employer
- There’s no certainty that you will be successful in an Employment Tribunal hearing
There are other reasons to negotiate including your work record, your feelings that you have worked hard for your employer and the fact that it is so hard when you lose your job and this might help persuade an employer to increase any offer made. Be aware though that many employers will have had their own advice before making the offer and may well have included something for these or similar reasons already.
We can advise you of the best strategy for negotiation with a Settlement Agreement. Simply contact Russell Jones or Luke Rees who are experienced Solicitors and Partners who can guide and support you. They can be contacted by calling 01623 45 11 11 or by emailing email@example.com or firstname.lastname@example.org