A Settlement Agreement allows an employer and an employee to reach a mutual agreement in order to end a term of employment, which offers protections for both sides once the employee moves on.
If you are caught up in the process of departing a company, it is important to ensure that you are able to preserve your reputation when you leave, receive a satisfactory reference and are able to move on freely.
With this in mind, negotiating a water-tight Settlement Agreement is often crucial – particularly if you are a high-level senior executive with an interest in determining what happens to any long-term incentive awards (LTIPs) and actual and deferred bonus elements, which can often be the most valuable part of your exit package.
Regardless of your circumstances, however, seeking advice at the earliest possible opportunity is the best first step to securing a favourable exit package.
Samantha Randall, an employment law expert with Palmers, said: “Once an initial offer is received from your employer, you will understand the value of any potential claims you may have and be able to weigh up whether you want to take the offer, or seek better terms.
“A Settlement Agreement is a legally-binding contract made in full and final settlement of any potential employment-related claims you may have against your employer.
“With this in mind, it is vital that you ensure you are completely satisfied with the terms of an agreement before signing it, as doing so will effectively ‘waive’ any potential claims in exchange for the package on offer.
“This is one of many reasons why it is best to seek advice early on – preferably before an initial offer is even made.”
If you believe you are about to be pushed-out for any reason, or if you have received an initial settlement offer from an employer, the team at Palmers can provide you with tactical advice on your options in relation to the agreement.
Our team will help protect your best interests by negotiating with your employer to assist in achieving the best possible settlement terms.
To find out how we can help, please contact us.