What happens if one side rejects the agreement?

If either party decides they do not agree with the agreement’s terms, they should first attempt to negotiate (with guidance from a lawyer). Possible negotiations include a payment increase or making changes to the terms.

Employees do not have to sign any agreement if:

• They are asked to do so immediately. Workers must be given a minimum of ten days to consider their options. Asking them to sign before ten days has passed counts as ‘undue pressure’ and has legal ramifications for the employer.
• They haven’t had legal advice. Every employee faced with a settlement situation should consult with an employment solicitor, the Citizens Advice Bureau, or a union representative.

Normally, the company will pay the employee’s fees when seeking advice, though detailed advice and other negotiations may not be covered. Employers should be aware that even if an employee signs a settlement, if the worker has not had independent legal advice then the company is not protected from future claims.

• They feel there are claims they want to take to court or Tribunal against the employer. Signing a settlement agreement means that the employee waives their right to bring a claim (bar personal injury and pension rights cases) against the company, including if they feel the employer has acted improperly during the settlement process.
• They don’t want to. Settlement agreements are not compulsory, and the employee should not feel pressured to sign against their true will. Other reasons for not signing might include finding the terms unacceptable, feeling they have been discriminated against, or feeling pushed out against their will. However, refusal to sign could lead to the employer taking alternative action like disciplinary proceedings.

Employees should take advantage of the offered legal advice to discuss all their options with an experienced employment solicitor. Employers should also secure legal advice at the earliest opportunity where they might want to offer a settlement to a worker.

Helix Law is available to draft settlement agreements for employer clients. We can also act on behalf of employees to ensure they secure the best possible deal. Contact us today to find out how we can help with regards to settlement deals and employment disputes.