Conflict in workplaces throughout the UK is still regarded as difficult to solve and is an issue that can negatively impact both workers and business owners. From the results of the CIPD Good Work Index 2024, 25% of workers, which is about 8 million people, reported suffering from conflict at work in the prior year. Most common areas reported were feeling belittled or insulted (48%), being yelled at or getting into an altercation (35%), and suffering from some form of discrimination (20%).
To try and mitigate such issues, the UK government put forward the Employment Rights Bill intending to expand rights for employees. One of the measures included in this bill is the establishment of the Fair Work Agency which has the mandate to bring action against an employer in an employment tribunal on behalf of the worker without the worker having to initiate legal action.
These proposals are controversial though, as some have argued that such changes would cost UK businesses as much as 5 billion pounds a year. In addition, the employment tribunal system is already overloaded with untended claims standing at 37000, and some hearings have been postponed until 2026.
Keeping these issues in focus, there has been an increased need for settlement agreement solicitors on account of the rising demand for faster and more amicable resolution of workplace conflicts.
Understanding Settlement Agreements
Agreement to Settlements is an enforceable contract between two parties such as a business and an employee, which facilitates fulfilling mutually agreeable terms to cease employment or settle disputes. In most cases, these contracts feature non-disclosure financial settlements and even non-defamatory clauses. Any employee who had filed a legal action against the employer and any of the clauses agreed to such settlement will be precluded from submitting further claims.
The Role of a Settlement Agreement Solicitor
An experienced Settlement agreement solicitor possesses substantial knowledge concerning the agreements and is competent to offer counsel to the employee and the employer’s interests. Their principal duties are as follows:
- Providing Independent Legal Advice: Clarification of the provisions of the settlement agreement to determine the implications for the client’s interests and what outcomes result from the signing of the document.
- Assisting Employers in Drafting and Negotiating Terms: Assisting employer clients with the precise wording of the settlement agreement to eliminate ambiguities while adhering to employment law to minimise the chances of litigation.
- Ensuring Compliance with Employment Laws: Ensuring the compliance of the United Kingdom’s employment law on the document to make the payment of the settlement legally binding.
Key Responsibilities of the Solicitor
- Explaining Terms and Implications: Translating the settlement agreement into simple legal terms to let the clients understand their responsibilities related to the inclusion of either confidential or restrictive covenants on them.
- Negotiating Favorable Terms: Advocating on behalf of the client to secure more favorable payment terms, such as higher settlements, lower premium payments, or positive payment terms, referrals.
- Ensuring Enforceability and Clarity: Avoiding vague terms, which could later arise in litigation court cases in the future, solves the problem.
Benefits of Engaging a Settlement Agreement Solicitor
- Expertise in Employment Law: This ensures that the specialised knowledge guarantees legal compliance in the document and the client’s rights are protected.
- Protection of Client Rights and Interests: Every solicitor seeks to achieve the best result for the client, who may be either an employee or an employer.
- Facilitation of Efficient and Amicable Dispute Resolution: Solicitors provide the required speed and convenience from both sides by settling the disputes without a tribunal.
Legal Framework and Compliance
Meeting specific legal conditions, for example, to be valid, settlement agreements must:
- Written Form: The agreement must be made in writing.
- Independent Legal Advice: The employee should be provided advice by an independent legal person like a solicitor.
- Identification of the Adviser: The agreement must name the person giving advice, and confirm that they hold the requisite insurance.
Considering these criteria makes sure the agreement is legally binding and prevents disputes from arising in the future.
Challenges and Considerations
Not having suitable legal services opens an individual to risks such as:
- Unfavorable Terms: Agreeing to unfavorable deals because they don’t understand the implications.
- Non-Compliance: Signing legally unenforceable contracts.
- Future Legal Action: Inviting legal action because the agreement is ambiguous or poorly executed.
Conclusion
Solicitors assigned with settlement agreements are integral in resolving workplace conflict in the UK. They ascertain that the agreements made are valid, equitable, and in maximum advantage to their clients. In doing so, they work towards preserving industrial peace and lessening the load on the tribunals, which is advantageous for employers and employees as well.
