3 Key Reasons to Get Legal Advice Before Signing a Settlement Agreement
3 Key Reasons to Get Legal Advice Before Signing a Settlement Agreement
Some employees may consider signing a settlement agreement without seeking legal advice. After all, if everything seems agreed and everyone’s happy, why complicate things?
However, getting expert legal advice is crucial before signing any settlement agreement. Here are three compelling reasons why consulting a solicitor is essential.
1. A Settlement Agreement Isn’t Legally Binding Without Legal Advice
Under UK law, settlement agreements are only valid if the employee has received independent legal advice. This rule protects employees from unknowingly waiving their rights.
By signing a settlement agreement, you typically give up your right to make any employment-related claims. But do you fully understand what those claims could be?
Speaking with a solicitor allows you to:
- Understand Your Rights: Gain clarity on your entitlement to compensation.
- Assess Your Options: Determine whether negotiating for a better offer or refusing to sign is the best course of action.
2. A Solicitor Can Help You Get the Best Deal
Are you sure you’re being offered fair compensation? A solicitor will review your case and advise you on what you’re entitled to under your settlement agreement.
To provide tailored advice, your solicitor will consider:
- Your annual salary and monthly take-home pay.
- The notice period your employer must give.
- The circumstances of your employment termination.
- How long it may take you to secure a new job.
This expert guidance ensures you don’t miss out on compensation you deserve, helping you achieve the best possible outcome.
3. You Could Avoid Unnecessary Tax Payments
Even if your settlement agreement offers fair compensation, it might not be structured in the most tax-efficient way. A solicitor can identify ways to maximise your payment.
For example:
- If you're paying tax on a payment in lieu of notice (PILON), your solicitor could suggest re-drafting the agreement to make the payment tax-free.
- This adjustment ensures you receive more money without requiring your employer to increase the offer.
Contact Us for a Free Consultation
If you’ve been offered a settlement agreement, it’s crucial to seek expert legal advice before signing. At Parachute Law, we help employees across the UK protect their rights and secure the best possible outcome.
Take advantage of our free consultation:
- Call us from a landline: 0207 183 4547
Alternatively, complete the contact form below, and one of our expert solicitors will be in touch
Contact Us
It is important to get independent legal advice from a settlement agreement solicitor before accepting an offer. Often, your employer will cover the costs. Get in contact with us and see how we can help.
