It is typical for the employer to contribute to the worker`s legal costs, which are usually in the order of £350 plus VAT for simple agreements and up to £1000 plus VAT for older employees, or where the agreement deals with more complex issues. The transaction agreement is a legal contract between you and your employer – you both have to comply with it. Your employer probably wants you to treat the agreement confidential. These agreements often involve an increase in severance pay, as employers can benefit from a smooth exit and protection against future rights. Settlement agreements prevent workers from taking legal action against the employer, possibly for unfair dismissal. Do I need independent legal advice before signing a settlement agreement? How much would it cost and how can I pay for it? Confidentiality clauses are common in transaction agreements. They usually mean that the parties promise not to make harmful statements about each other. This would prevent you from making harmful comments about your employer in the press or on social media, even if you are telling the truth. It could also prevent you from reporting misconduct as a whistleblower. Your lawyer should explain the effects carefully. Once a transaction agreement has been offered to you, you should ask yourself if you can make a counter-offer. Do you have an incentive to ask your employer to pay you more money? Or could you take legal action against your employer? If your employer has offered you a settlement agreement, talk to our experienced employment lawyers at Howells today. We can guide you through the proposal and ensure that you commit to entering into an agreement that works for you.

Why does the settlement agreement contain a long list of irrelevant claims? If you are an employer who always offers compromise agreements to your employees, it is likely that your agreement is outdated and may not offer you the necessary legal protection. It would be advisable for an employment law specialist to check your agreement to ensure that it adequately protects your company. Waterfront`s working department can establish an appropriate up-to-date agreement on a fixed fee basis. Apart from their respective rights, employers will also strive to ensure that there are no other possible rights that you may assert against them in the future. Presentation or precedent agreements often contain a list of all types of known claims, including those that might not apply to you. For example, most agreements retain formulations related to pregnancy and maternity, regardless of your gender. You can refer to the rights of part-time workers and the right to be heard with regard to dismissals, even if you have never been in such situations. If you get a settlement agreement, your employer will likely also have a “pre-termination negotiation” with you. Pre-termination negotiations (also known as “protected conversations”) came into effect at the same time as transaction agreements. Once you have signed a settlement agreement, there is no rollback, which is why the law insists that you use independent legal advice on the terms and effects of the settlement agreement. It is customary for the employer to pay or, at the very least, make a substantial contribution. However, the context and history of each person`s employment are different.

If, after receiving the advice, you are not satisfied with the amount of compensation or the wording of the agreement, it may be appropriate to negotiate. We have over ten years of experience in negotiating transaction agreements.