An important question is what happens if you do not enter into the Settlement Agreement. We will advise you on your options.
What happens if I do not sign the Settlement Agreement?
This depends on the circumstances in which you find yourself:
- You may remain employed and carry on as you are. However, that may be difficult for you in the light of the fact that you know your employer has suggested that you employment will be terminated.
- If you employer believes it has grounds to do so, action may be taken against you. This may be disciplinary proceedings, a capability procedure or selection for redundancy. If your employer takes action which is not legally justified or it does not follow the correct procedure, you may have a claim for compensation, depending on a number of factors.
- If you have a complaint about your treatment at work, and this is sufficient to give you a legal remedy (for example, a claim for discrimination), you may choose to resign and bring a claim for compensation.
- Alternatively, if you have grounds, you could remain in your employment but bring a claim for compensation.
- Before you commence proceedings in the Employment Tribunal, you have to take in part in a conciliation process through ACAS. This may lead to improved terms of settlement, which your employer was not willing to offer during original negotiations on the Settlement Agreement itself.
In any case where your legal rights have been infringed and you want to bring a claim for compensation, there are very strict time limits. We warn you of this, but you will need to take additional advice very quickly if you wish to pursue a claim.
What is involved in bringing a claim for compensation?
There are a number of important factors that you need to weigh up if you are contemplating whether to take legal proceedings instead of entering into the Settlement Agreement:
- Employment litigation, like other court cases, always involves a degree of uncertainty.
- What will it cost to bring proceedings? The pricing guide on our website gives you an indication of the level of costs that might be expected from an unfair dismissal or breach of contract claim. Other types of claim might be more complex and expensive. Legal costs are not usually recovered by a successful party in Employment Tribunal litigation, so the cost of the bringing the claim will reduce the net compensation received. If you are unsuccessful, the cost of bringing the proceedings will be lost altogether.
- You may have insurance which will help with the cost of proceedings.
- A solicitor may be willing to act for you in Employment Tribunal proceedings under a contingency fee agreement (‘No Win No Fee’) but you may lose a large part of your compensation and you still have to meet significant expenses such as the costs of a barrister.
- It is important to also to bear in mind not only the potential cost, but also the time, effort and possible disruption that employment litigation can cause.
- If you have obtained new employment, it may be particularly difficult to be involved in litigation against your former employer, whilst settling into your new role. In addition, the income from you new job is likely to reduce your claim for compensation.
If you are not happy with the Settlement Agreement, you will need to consider such factors very carefully, having regard to which of them matters most to you.
To discuss your options, please email info@gssettlementagreements.co.uk or contact the team on 020 8305 3544.