Employees turning to settlement agreements to escape unhappy workplaces

THEY'RE traditionally offered by employers as a way of suggesting that an employee moves on without fear of reprisals. But there's nothing to stop employees, rather than their bosses, making the first move when it comes to suggesting settlement agreements, according to an employment law solicitor who works on both sides of the fence. Lindsey Knowles from Kirwans law firm is at the forefront of driving a change in the way that settlement agreements are being used, and said that a number of employees who have grievances at work could benefit from using a settlement agreement to fast-track themselves out of unhappy employment.

Lindsey said:- "Settlement agreements can provide a good option for employees who are still in employment but are concerned about work; maybe because of bullying, discrimination claims or other grievances, or they themselves may be facing disciplinary action. If they no longer want to work for the employer but would rather not resign and walk away with nothing, bring a constructive dismissal claim or even face the risk of dismissal, then putting forward a settlement agreement could be a good alternative. Offering an employer a settlement agreement involves writing a 'without prejudice' letter, setting out the issues which the employee has and suggesting the potential to negotiate a termination of the person's employment under a settlement agreement."

Settlement agreements came into force in 29 July 2013, as part of a number of measures to improve employment legislation. Previously known as compromise agreements, these legally binding written contracts record an employee's agreement not to pursue legal action against their employer over anything set out in the agreement.

Not all employment claims can be waived; claims for statutory maternity, paternity or adoption pay, for example, cannot be covered by settlement agreements. The specific claims they apply to must be set out, and the other legal requirements to be a valid settlement agreement must be followed. Lindsey said:- "Obviously there is no guarantee that the employer will enter into negotiations, but it does open the door to discussions about how to end what can often be a difficult situation for both parties."

Things to consider if you want to suggest a settlement agreement:-

1) Suggesting a settlement agreement is likely to end any relationship you have with your employer, so be sure that you're ready to leave before revealing your plans.

2) Make sure you seek legal advice before discussing any settlement agreement with your boss, as there are specific ways that it should be done depending on your current relationship. If there is already a dispute, for example if you have already raised a grievance or if disciplinary action or performance management has been initiated, then any letter should be titled as 'without prejudice and subject to contract,' and conversations should be requested in advance as being protected and on a 'without prejudice' basis. This means that details of the letter or conversation cannot be used against you in any subsequent court case or employment tribunal.

3) Where there is not already a dispute, but you are simply unhappy in a situation, then you could request a 'protected conversation,' which enables parties to have 'off the record' discussions. Be aware, however, that if you were to go on to bring a claim for anything other than a standard unfair dismissal or constructive dismissal, your employer could, in trying to defend the claim, legally refer to the discussions which took place during any protected conversations.

4) Be clear on why you are proposing a settlement agreement and how your employer might benefit from agreeing to it.

5) If you're not yet sure which legal option to present to your employer, then protect your right to press ahead with a constructive dismissal claim by sending a letter to them stating that your continued employment remains 'under protest.' Be aware, however, that working in this way should be seen as an extremely short term solution, and that any constructive dismissal claim should be brought as soon as possible after an alleged breach of contract by your employer;

6) Don't suggest an actual figure in your 1st approach. Instead, wait to see what your employer is prepared to offer.

7) Settlement agreements don't just involve financial settlements; you can negotiate about references, restrictive covenants and notifications, so think carefully about what you'll need going forward.

Workers in the North West still ₤38 a week worse off than before the crash

NEW figures published by the Office for National Statistics (ONS) show that North West workers are still ₤38 a week worse off than they were before the financial crash. The ONS figures show that for the year to April 2017 real wages in the North West were 8.5% below their 2008 level. Nationally, inflation has overtaken wage growth for the last 6 months, so the TUC is concerned that next year could be even worse. TUC Regional Secretary for the North West Lynn Collins said:- "Most families still haven't recovered from the financial crash, yet their pay packets are now taking another hammering. It's leaving millions of working people facing hardship and getting deeper into debt. Public sector workers have had it especially hard, with real pay cuts for seven long years. The Chancellor must use next month's budget to give them the pay rise they've earned. He should also use the budget to help bring great jobs to the North West, by investing in skills and infrastructure. And he must help low-paid workers by raising the minimum wage to ₤10 an hour as soon as possible."