Settlement Agreement

[abstractzebra]

Hi all, I hope someone can help.
I'm being made redundant soon and have been given a settlement agreement which I have to take to a solicitor to check and sign.
I was under the impression that it was to settle my redundancy claim but it seems to include signing away my employment rights eg. I can't claim for unfair dismissal and other things.
We've had some serious issues and poor treatment over the years and I really don't believe that I am being made redundant in a fair way but it will only be after I leave that I will really know if I have been made redundant in a fair manner. I have made a general complaint about the treatment of myself and others and have suggested that it would be impossible to know if your redundancy is fair when you work in a dishonest environment.
I also don't really know what would happen if I said I didn't agree. I've not taken it to a solicitor yet and there's a mistake on it regarding the money, so I already have to get that rectified.
I'm not sure what I'm really signing for!

If you are being made compulsory redundant and there is no enhanced payment, you do not need to sign the settlement agreement. You then have options with regard to employment tribunals etc. Generally speaking, a settlement agreement does involve giving up all your rights but the benefit is an enhanced payment. Speak to your union or ACAS for detailed advice.

”I was under the impression that it was to settle my redundancy claim but it seems to include signing away my employment rights eg. I can't claim for unfair dismissal and other things.”

Unfair dismissal is the claim you’d make if you felt your redundancy wasn’t lawful. Your solicitor will advise you on the implications of the agreement and on your options if you choose not to sign.

Thanks for the advice.
Their are some enhancements but they are for everyone, not just specifically for me.
I just called a work colleague in a similar position and she said she is going to get her union legal department to look at it due to the fact that if there was any issues going forward the legal cover is there.
I'm also in a union, so I do have the option to run it past them.
On my part and others within the company, there is a complete lack of trust. We've already highlighted errors and contested various issues (and won), so we are very much aware that there is an element of 'trying it on'

Do you have an appointment with a solicitor yet?

No, not yet.
I have only just received the documents but if I don't use legal advice through my union, I will probably use my local solicitor.

Your employer will be paying for it so make sure you get decent advice.

Yes this is the purpose of getting the legal advice really, you need to take the agreement to a solicitor with knowledge of employment law and get them to go through it with you and advise whether it's in your best interests to sign. Your employer should pay so don't worry about the cost.

It seems to be fairly common practice for companies to get employees to sign a settlement agreement whenever they make redundancies. It's not something I like to do myself as for me as it's not a requirement of the redundancy process and if everything has been managed fairly and above board, the employee wouldn't succeed in a tribunal claim anyway so its an unnecessary extra step. I've heard of companies threatening to withhold contractual (or even statutory) redundancy pay from employees who are clearly redundant and therefore entitled to it, if they don't sign a very restrictive agreement which is totally wrong IMO. But that is what the legal safeguard of you having to get independent legal advice to make the agreement valid is there for.

I would agree that if they are offering you significantly enhanced terms than what you are entitled to under statutory redundancy/your contractual redundancy pay, and/or including 'extras' like an agreed reference then in exchange they will want to know you aren't going to sue them, which is fair enough. Settlement agreements usually also contain some clauses about not libelling/slandering them after you've left their employment, keeping the details of your redundancy process confidential (this shouldn't affect statutory rights around things like whistle-blowing) and sometimes restrictions on how/when you can work for competitors. If all of this is fairly written and not unduly restrictive it may well be completely in your best interests to sign.

So whether or not you should sign will depend on what you'd get if you don't sign (i.e. is the compensation amount contingent on the agreement or are you contractually entitled to it in any event), and what you are losing by signing, i.e. do you have a good case for unfair dismissal and/or another tribunal claim, and if you succeeded in that what compensation could you expect (less legal fees and other costs), and what the difference is between that and what you are being offered. Ask these questions of your solicitor (make sure you take your contract/terms and conditions of employment and any relevant employee handbooks or policies along to the appointment)...

Thank you for the great advice.
A lot of it falls in line with what is happening.
I have no issue with being made redundant or the payment but there is a certain amount of doubt that some of it is above board regarding who may continue working for them.
I will make it clear to my solicitor/union what my concerns are.

Work will be paying for legal advice, so go and speak to a solicitor rather than asking on here

Make sure it includes the agreed wording of a reference that will be sent to anyone who requests one from them. If it doesn't, the solicitor may suggest that anyway but I would strongly recommend doing that now.

Thank you.
I obviously will be using a solicitor and it is paid for.
I just wanted to know what to expect and any handy pointers.