Although the purpose of the Settlement Agreement is to settle all claims arising from your employment or the termination of your employment, we would normally expect to see certain claims excluded:
- Claims to enforce the terms of the Settlement Agreement (although this may be implied)
- Claims with respect to accrued pension rights to the date of termination (if applicable). If you are a member of an occupational pension scheme, your pension rights may be frozen at the date your employment ends until your retirement date. Please note we cannot offer financial advice on pensions and other financial matters and you should speak to an independent financial adviser or the pension provider itself for information.
- Personal injury claims. Normally employers will ask you to confirm that you are not aware of any personal injury claims or any circumstances that might give rise to any. So if for example you have tripped over a cable at work, injured your back lifting heavy boxes or developed pains in your wrist from typing, or think that any injury or condition may develop because of your working environment or anything that has happened at work, please let us know. We are not personal injury lawyers and cannot advise you on such claims, but we can take appropriate steps if we identify them. However, if, for example, after signing the agreement, you develop a medical condition such as asbestosis, having been unknowingly exposed to asbestos dust at work, your right to bring a personal injury claim would be unaffected.
- Where the particular claims that you might have against the employer are not specified in the agreement, or where there is simply a list of all claims that you could bring, whether or not they apply to your specific circumstances, there may also be a technical legal argument that the agreement does not comply with statute and that even if you sign it you could still bring certain statutory claims. Bringing a claim might have other implications, however, such as repaying the compensation payment and this will not affect other claims such as breach of contract. Please let us know if you want to discuss this further.
We will discuss this with you carefully if you instruct our experienced employment lawyers to advise you on the Settlement Agreement that you have been invited to enter into. Call today.
Common Questions regarding Settlement Agreements
- What is a Settlement Agreement and why should I sign one?
- Why do I need to see an employment solicitor before signing a Settlement Agreement?
- Do I have to pay to get advice on a Settlement Agreement?
- Should I accept the Settlement Agreement or ask for more money?
- Can payments made under a Settlement Agreement be paid free of tax?
- Can I get an agreed reference as part of the Settlement Agreement?
- Should I reject the Settlement Agreement Offer and bring a claim in the Employment Tribunal?
- What are common clauses in a Settlement Agreement?