There are many reasons why a Settlement Agreement might be a better option than an Employment Tribunal claim.
We won’t necessarily always advise our clients to accept the terms of a Settlement Agreement (and never if it is a bad one!) but, overall, a Settlement Agreement has many advantages.
You might have fallen out with your employer, been constructively or unfairly dismissed, or discriminated against. No two situations are ever exactly the same. Different types of potential Employment Tribunal claims have very different types of potential values and we can advise you accordingly. You can be assured we have the requisite knowledge, experience and expertise at aiMac-hr to provide you with the correct advice from the outset.
(a) Employment Tribunal claims can become very costly, drawn out and extremely stressful; especially now they are taking so much longer to get to a final hearing.
(b) Your Employment Tribunal claim may not succeed and you could lose, meaning you end up with nothing at all.
(c) A Settlement Agreement can provide certainty and eliminates the element of risk involved in an Employment Tribunal claim – it is normally confidential – and the employer will also usually pay all the legal costs of the employee.
(d) Even if your Employment Tribunal claim succeeds, the value of it may be significantly reduced if you find another job – this is because if you are claiming for lost earnings, you’re only entitled to be compensated for your actual financial losses. You can negotiate a compensation figure in a Settlement Agreement based on on how long you’re likely to be unemployed and if you get back into work sooner than expected, then that’s just a bonus!
(e) A Settlement Agreement can also include a positive and helpful reference – whereas an Employment Tribunal does not have the power to order one of these.
We advise clients throughout the UK on their Settlement Agreements. Call us now on 07921 938675 for a free consultation. Alternatively, complete the contact form on our website and submit.