Press Release: Out-going workers agreeing to settlements could lose out, warns Band Hatton Solicitors

Out-going workers in dispute with their employers risk losing out if they make agreements not to claim against them in return for a financial settlement, a Coventry law firm has warned.
As businesses in the region make redundancies to cope with the credit crisis, firms often use compromise agreements in relation to redundancies, unfair dismissal or unlawful discrimination to avoid future claims by former employees.
Such deals can include clauses that see employees agreeing not to compete with the employer in the future, not making derogatory remarks against each other, and providing assistance to their old employer in the future without being paid.
Head of employment at Band Hatton solicitors, Mark Ridley, says compromise agreements can also deprive employees of their best exit deal and advises all out-going employees to seek independent advice as soon as a deal is put on the table.
“While compromise agreements can often help resolve issues between employers and employees fairly, they can sometimes result in employees agreeing to a deal which is not necessarily the best available to them,” said Ridley.
“For instance while being offered three month’s pay to leave quietly may sound attractive, if your notice period is two months you are only really receiving one month’s extra pay, and with the job market in the area still very much in recovery the extra money might not last too long.
“It is also a legal requirement that before signing any such agreement employees have received independent advice, and I strongly advise people to speak to a solicitor when situations like this arise. 
“Solicitors have a firm understanding of what is fair for employees, like making sure all factors such as the length of their service are taken into account.
“They can also negotiate on employees’ behalf in relation to references.
“Employers will also often pay or contribute towards the legal costs incurred during this process.”

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Advent Communications
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