What is a Settlement Agreement? Understanding Your Rights During University Job Cuts
With the University of Nottingham initiating voluntary redundancies and echoes of Loughborough University’s COVID-era staff reductions, it’s crucial to understand how settlement agreements work – and why legal advice matters.
In response to financial pressures the University of Nottingham has recently launched a voluntary redundancy scheme. This initiative, known as the Mutually Agreed Resignation Scheme, aims to address these challenges while adapting to the evolving higher education landscape.
Similarly, during the COVID-19 pandemic, Loughborough University implemented measures to manage staff redundancies. Their approach included exploring redeployment opportunities and offering voluntary severance packages to minimise compulsory redundancies. In tumultuous times like these, and as employments come to an end, there is a vast usage and heavy reliance on settlement agreements.
What is a Settlement Agreement?
A settlement agreement is a document which facilitates the end of your employment in a mutually acceptable way between both you and your employer. The settlement agreement achieves this by establishing the terms and conditions of the termination of your employment, escaping the need for an employment tribunal claim.
Before signing a settlement agreement, you are required to obtain independent legal advice. This is to ensure that you are advised on your legal rights and that your interests are protected. Here at Moss Solicitors, we are regularly instructed to advise employees on settlement agreements.
Key Features of Settlement Agreements:
- They establish a “termination date” of when the employment will end.
- Typically, there will be a payment of compensation to the employee and a reference that can be annexed to the settlement agreement.
- Settlement agreements are legally binding.
- They include a confidentiality clause
- They address and resolve specific disputes or claims between the parties and waive the employee’s right to bring a claim covered by the settlement agreement to the employment tribunal or court.
- The costs of an employee seeking legal advice are paid for by the employer.
Why Universities Use Settlement Agreements
Universities utilise settlement agreements to manage staff reductions while mitigating the risk of legal disputes. Settlement agreements provide clarity and closure for both parties, ensuring a smoother transition during organisational changes.
Legal Support
Settlement agreements can be particularly complex. Therefore, it is absolutely crucial that you obtain independent legal advice before signing one.
Here at Moss Solicitors, our employment law specialist, Tom Lathom, is available to provide guidance and support during these challenging times. With extensive experience in employment law, Tom can help you navigate the intricacies of settlement agreements and ensure your interests are safeguarded.
