Often someone exits their employment not necessarily by choice or at a convenient moment. Instead, the employer initiates the separation for numerous reasons, whether termination or perhaps a layoff.
The formal ending to the employment relationship tends to come with a mutually agreed-upon settlement agreement with the employer. The hope is that the contract will be satisfactory without an employment tribunal. The preference for both camps is to reach a settlement more so than for the case to go to litigation.
Remember to avoid becoming emotional when there appear to be discussions about a potential separation.
Employees don’t want to “burn a bridge.” The priority is to remain rational as you go through the conditions of the proposal to ensure it works toward your better interests. Let’s look at a few tips for negotiating and signing a definitive settlement agreement.
Top Tips For Signing For Signing Settlement Agreements
Employment doesn’t always go the way you anticipate. Sometimes, out of the blue, there comes the instance when an employer might reach out with the news that your position is being eliminated and you will be separating from the company.
In that situation, the firm will typically offer a settlement agreement that needs to be mutually satisfactory. Find details on making a settlement agreement at https://www.citizensadvice.org.uk/work/problems-at-work/making-a-settlement-agreement-with-your-employer/.
If terms cannot be agreed upon, the discourse will need to be taken to an employment tribunal to work through the issues. Litigation is the last thing either party hopes for, however.
The preference is that the agreement will be in the employee’s best interest. Check out a few tips meant to bring an agreement to this end.
-
Remain mindful when considering the agreement
When going over the agreement’s contents, it’s vital to remain mindful and not make a “spur of the moment” decision. Some employers will provide drafts of their settlement terms while in “discussions.”
If it represents the package wholly, it can be beneficial if you avoid an initial reaction. Instead, it’s essential to take the document to consider each point carefully.
If you’re given a deadline, that’s unofficial and cannot be enforced. If you require time for additional guidance from family members or even a professional, you can make that indication.
-
Legal rights should be understood but not used as a threat
There’s a level of confidence in understanding you have legal rights unless your position in the separation is weak. That’s something you need to learn from the start.
It would be best if you never threatened the notion of going to court “off the cuff,” especially when you’re unsure of your position. It has the potential to jeopardize negotiations down the road.
-
Seek professional guidance
Seeking professional legal consultation from the start is a good idea. When negotiating with the employer for you, the expert has the knowledge to advise your position and expertise to secure a better position if it comes to that.
That can alleviate the stress and aggravation of the situation for you plus possibly save you money in the long run. When a firm realizes professional legal counsel is working to handle the settlement agreement terms, they will be more forthcoming with fair terms and likely to ensure a more rapid conclusion.
-
If figures aren’t readily provided, insist on these
Typically, an employer will draft a settlement agreement for you to see before a final document is prepared. If your firm doesn’t do this, insist on receiving a breakdown. It would be best to document each step of the process, including meetings, oral proposals, and if these are later confirmed in writing.
No one wants to go to litigation, but if this becomes necessary, you’ll need to have adequate documentation.
-
Share options and pensions have value
The way you leave a position will determine entitlement to share options and pensions, which are exceptionally valuable for an employee. If you go under reasonable terms, you could still see profits when allowed to “exercise share options” by your separating employer.
Plus, there is the potential for generous pension terms depending on your “redundancy” when reaching a particular age or if you separate based on poor health. How separation comes about needs to be something you and your company come to an agreement on.
-
“Cost neutral” suggestions you can make
When an employer becomes stringent about the amount, they’re willing to settle on for payout, there could be “cost neutral” suggestions you can man with the settlement agreement.
Have you considered perhaps you may need a reference letter from this employer to help you move on to your next position? Continuing private medical insurance coverage for premiums that have already been covered would not only be beneficial for you, but the company would lose nothing.
Professional legal counsel can help with these negotiations. Go here for details on settlement pay.
Final Thought
Settlement agreements were at one point referenced as “compromise agreements.” You must understand you won’t necessarily get everything you hope for in the terms, but you also don’t want to “settle” for the initial draft.
As suggested, professional guidance is often a good choice. It will relieve stress and frustration and help you see the proposal from a different perspective, maybe offering a thought process you wouldn’t have otherwise considered.
A negotiated separation can be positive for an employee and the employer since it will close a chapter allowing everyone to progress forward. Who knows what might be waiting on the other side?
