On this page we are pleased to share with you some case studies of settlement agreements we have worked on.
Nov 2023 – Northampton – alternative to disciplinary
The client had been suspended and an investigation commenced as to disciplinary action. The employer offered the employee a settlement as she had been there a few years. The offer was a month’s salary as notice and a month’s tax free sum with a low contribution to legal fees. We were able to negotiate a much higher package as her notice pay was 1 week short so this was increased by around £600 before tax. We secured many changes in the wording of the settlement agreement. We more than tripled the ex gratia sum and increased the contribution to legal fees meaning the client only had to pay £250 plus VAT herself.
Oct 2023 – Northampton – Age discrimination
The client came to see me after his hours had been unilaterally reduced and he was offered a settlement agreement to leave. The sum offered was derisory and he was told he had to pay his own legal fees. Following Sarah’s intervention the sums secured was six times higher than he originally had and the employer agreed to pay the usual contribution to legal fees. The client was very pleased that he sought advice from this firm.
Sept 23 – Wales – Tax savings
The client was being made redundant as the area of the business he worked in the UK was to cease. He has agreed to stay on beyond the notice period as he would lose his benefits of health care and company car on termination. We discussed the tax treatment of the payments and that it would actually bring a significant saving if he terminated at the end of the notice period and had the balance of time tax free as within the threshold and not work as the tax saving outweighed the loss of benefits and it was far enough in the future for him to feel confident he would secure alternative employment by the new termination date. We were also able to secure a relaxation of the restrictive covenants and additional bonus/commission payments. The employee was not personally charged for the agreement beyond the initial contribution to legal fees from the employer.
Sept 23 – Yorkshire – False allegations
The client sought advice as he had been subject to a protracted investigation into alleged misconduct which had dragged on for months and which he believed he was innocent. The client had less than two years service. With our advice and assistance the client was able to negotiate direct to secure his notice pay in lieu and a termination payment. In addition, following advice Sarah was able to secure a number of changes to the agreement including a withdrawal of the allegations, a reference, relaxation of the restrictive covenants post termination and removal of the clause that he would provide assistance after termination for expenses. The client was not charged anything beyond the initial contribution to legal fees from the employer.
July 2023 – Northampton – Disability discrimination
The client instructed Sarah to advise on the settlement agreement offered after a period of sickness absence for disability related reasons. Sarah was able to negotiate an 80% increase in the termination payment. As part of the negotiations we secured an additional contribution to legal fees from the employer meaning that the client was able to retain all of the package himself.
June 2023 – Birmingham – redundancy exit
The client has stayed on to assist with the handover of work following the closure of an area of the business. In addition to an extended notice period, we were able to secure an additional £12,000 for the client. There was an additional cost to the employee as a result of securing the better deal for him of £450 plus VAT.
May 2023 – Hertfordshire – Senior Executive referral
The client was referred by other senior executives from the same plc who used Sarah when they exited under a settlement agreement. The client had a high value package of over £300,000 when leaving, Sarah having provided advice on the negotiations to start with. We were able to secure a 50% increase in the termination payment as a result which was over £30,000 additional payment even after the client negotiated using our advice. The client did have to make a contribution to legal fees but of £400 plus VAT for having secured an amazing exit package.
April 2023 – Northampton – Company property collection
The client had agreed terms with her employer and we were instructed once the settlement agreement has been drafted so negotiations were exhausted. We were still able to arrange for company property to be collected by courier rather than the client do a 120 mile round trip to deliver them. Several unfavourable terms were removed and having secured an increase in legal fees from the employer the client had no charge personally.
April 2023 – Bath – release from restrictions
The client instructed us to advise on a settlement agreement. We provided initial advice to enable the client to negotiate the sums. Once the draft settlement agreement was received we were still able to make additional improvements. We secured a release from his restrictive covenants on where he could work after the termination and also a reduction in the time periods for all restrictions given there was to be a period of garden leave which was very valuable for the client who worked in sales. We secured another quarter’s commission for him and also removed other unfavourable terms. There was no contribution from the client in legal fees and this was covered by his employer.
January 23 – London – Senior Executive
The client is a senior executive who has instructed Sarah on multiple occasions as settlement agreements at his level are standard on exits from the business. Sarah has been representing him for over 12 years on such occasions which will arise every 3 / 4 years.
This occasion was a genuine redundancy situation and the client had negotiated the settlement sum himself with it being at its limit when he instructed Sarah to assist again. Sarah was however able to advise him on the wording of the settlement and noted that the PILON should have been for basic pay and benefits and not just basic pay so was able to secure a small increase of 10% to the sums already agreed as well as an increase to legal fees so there was no contribution required from him. In addition, Sarah negotiated a reference annexed to the agreement and release of the non-compete clauses of his contract of
employment.