settlement agreement - additional costs

[hippychickreno]

DH has been notified of a settlement agreement. we have no law knowledge/understanding of it etc. it looks fairly standard, needs a solicitor to sign off and will cover the cost up to £500 for this. DH has spoker to a few soliciltors (all jst from google search dont know anyone who can recomend) one he is keen to use has said the £500 will jst cover them to review and he would need to pay an extra £300 (out of own money) if he wanted them to negotiate a higher figure.
is the standard practice? i jst assumed the £500 figure would include negotations on his behalf?

Yes that’s standard. The company amount covers the cost of them reading it, answering a few questions and putting their advisor letter in. The company will not pay your costs if negotiating against them

Costs OF negotiating against them

I agree.

Is there some reason why you think they might be willing to pay more?

This is correct.

Why did you think an employer would pay you to negotiate against them? They provide the amount to allow you to have a legal eye check it, but nothing else.

£500 is standard, anything to do with negotiating comes out of your pocket.

What has he been offered? Don't have to give specifics

thanks everyone. not that i thought his employer would pay to cover negoations more that i thought a small amount of negotation would be included as standard as part of the service from the solicitor for the £500. (we didnt realise the £500 would jst literally cover them to read and sign it off)

he has been offered:
severance payment x amount (this hasnt been broken down into stat reduancy) js one lump sum which once we have worked out stat reducuancy is about £7k more than that)
notice period x amount
car allowance x small amount
pensions contr x small amount

he has worked there 10 years. this has come out of the blue on friday with end of contract date 31st Jan. we have x2 small children i work parttime, big mortgage etc. js feels very scary and no idea if this is a good deal or not.

Do the "small amounts" add up to about £7k?

Yes that's usual.
But his solicitor could negotiate for the employer to pay their higher costs as well, but no guarantee

It's more than compulsory. It's the offer they have made. Can your DH not ask if they might increase it to say £10k?

The solicitors' fee covers the solicitor providing advice about the rights covered or signed away in the SA. Most high Street firms will cover it for £500. Contact one local to the company and they might know the SA inside out already.

One this yiur DH can negotiate is an agreed reference and it may be worth asking for an amount towards Outplacement fees.

Good luck.

Depending on the industry, which I appreciate can vary when it comes to negotiations.

I would suggest a month for every year he's worked there & notice period

Removal of any non-compete clause

Agreed reference statement

thanks, do you think its worth him asking personally to up it to £10k or is it better coming from a solicitor?

what are outplacement fees?

sorry if i wasnt clear so its listed as
severance payment x amount

then in addition to this
x amount for his notice period
£1k car allowance
£500 pensions contributions

we have worked out his stat redunancy anyway would be around £7k so the severance pay is double this. i think where i am coming from is he hasnt been through any formal process or consultation, js been sent this and will be unemployed in a few weeks. for 10yrs worth of work really only worth £7k on top of what they have to pay?

Op, what reason have the employer given for termination?

This will show appetite for negotiation

I agree this doesn't seem much of a settlement amount for 10 years. I'd be inclined to negotiate for more.

Unless there were issues with his performance on the job?

If no issues, recent good appraisal etc I'd negotiate for more. And I'd expect a solicitor to charge for this on top of checking through the contract.

they have been very vague, mentioned a restrucure but it seems he is the only one to go (they stressed on the phone how confidential it was and they wanted it to be a mutual departure) all verbal discussion - nothing in writing. the agreement its self doesnt state any reason.

It sound more than fair to me - £7k over statutory

What level is his role?

no issues with performance, do you think best to get solicitor to try to negotiate more or worth himself going back in with a figure? considering it is out of the blue with 2 weeks notice, i thought at least 10k-15k rather than £7k

Ok so it’s double the statutory

As statutory is capped, what would it be if it was uncapped?

What's the alternative? They make him redundant and you just get 7k.....which would you prefer?

(Maybe he knows why they are doing it this way and not following due process....that might impact your response.)

good to hve different views, some think this deal isnt good you seem to think ok.
middle manager type role, i could understand the £7k if he had been through a conultation process etc and it was all out in the open but it is very hush hush, he manages a team which i assume will js be told he isnt coming back?! and given only 2 weeks notice

Well he’s been given 2 weeks notice plus paid his notice period

It's very hard to say without knowing full situation of his industry, how easily the co. could afford the extra 7k etc, so many variables.

For example, double the statutory is a good offer generally. But 7k over statutory after 10 years of loyal service with a recent spotless appraisal isn't so good.

The solicitor who knows the full story would be able to make a rec on this.

The fact they want it kept so confidential goes in your favour, basically if they want him to go quietly then they'll have to pay.

Find a good solicitor and good luck!

thank you 🙏

Sorry OP but by trying to keep the numbers private you have made me confused! They're basically offering him the equivalent of 2 months' salary then?

Is it a private or public sector organisation? Only asking as I'm in a public sector org which has just had a restructure and a few people are suddenly deciding to retire or move on out of the blue. If it's public sector they will be more limited in what they can offer.

If your dp is being honest and there's no skeletons in his closet I would get a solicitor involved and push for 3 months' (ask for 6?) gardening leave on top of a renegotiated settlement figure.

If he has had a number of jobs in the same company you'll need to find check he has continuous employment in his contracts and they each new job didn't reset the clock.

I think he also needs to get an evening job while this is going on to build up a buffer - the way you're talking makes it sound like you're living paycheque to paycheque and don't have much in savings?

Guess it depends on the chances of negotiating more than £300 extra to cover the costs.