When offered a settlement agreement by your employer, it is important that you are given sufficient time to properly consider it before making a decision.
The ACAS Code of Practice
The general rule under the ACAS Code of Practice on Settlement Agreements is that employees should be given a minimum of 10 calendar days to consider the terms of a proposed settlement agreement. This is guidance only so employers can choose to ignore it, however there may be implications if they do so.
My employer is trying to get me to accept exit terms before it will send me a settlement agreement – what do I do?
This is a common tactic used by employers. Employers think that if the employee agrees to accept headline exit terms it is less likely they will push for changes when they receive their draft settlement agreement. Don’t be fooled! You cannot legally accept a settlement agreement until you have seen the whole document and until you have been legally advised on it. As above, the guidance is that you should be allowed 10 days to consider the offer after you have received the draft settlement agreement terms.
Where your employer is pressurising you to accept headline exit terms the best approach in response is to simply ask your employer to send you the draft settlement agreement, that you will then take advice and get back to them asap.
If my employer is pressurising me to accept an exit deal, how can I push back?
If your employer does not provide you with the recommended 10 days to consider the exit offer and if it is pressurising you to accept it, this may be classed as undue pressure. Where undue pressure is applied this can result in the protection, which usually applies on the approach to settle from an employer, under what is known a protected conversation being removed. Therefore, failure to adhere to this period under ACAS guidance may affect the admissibility of protected settlement negotiations as evidence in unfair dismissal cases before an employment tribunal.
Key Takeaway
You should argue that you are entitled to have at least 10 calendar days to decide whether you want to accept a settlement agreement. This time should allow you to seek independent legal advice before signing, ensuring that your rights are protected.
You should speak with an employment solicitor once you have been given your settlement agreement. This gives you the opportunity to explore:
- how tribunal awards are calculated – to help you work out whether you want to accept the offer
- the effect of what you are signing
- what changes are needed to the draft agreement
- how best to approach negotiations (if needed)
With this guidance, you’ll be in a strong position to decide whether to accept the settlement agreement.
Need expert advice on a settlement agreement?
David Greenhalgh is a leading settlement agreement lawyer.
He has over 35 years’ experience and in that time, he has advised on over 10,000 settlement agreements.
He can review and sign off your agreement if you are happy with what you are being offered, or he can negotiate for increased amounts and better terms.
This page/article/blog is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.
