Most employers will contribute towards your legal costs of obtaining independent legal advice on the proposed settlement agreement. This is because for a settlement agreement to be legally binding the employee must have received independent legal advice.
In our experience, this contribution ranges typically from £350 to £500 plus VAT.
When dealing with settlement agreements, we will always enquire into the circumstances giving rise to the offer. This is because often the settlement agreement is being offered in exchange for the employee agreeing to not pursue any employment tribunal claims.
Employers will often assert that the fee is for advice on the agreement only but there is a lot more work involved. We review the employment contract and discuss the circumstances with you. We need to understand why the settlement agreement has been proposed, otherwise, it is difficult and possibly even negligent for our employment lawyers not to give advice on whether there might be a claim worth more than the sum being offered. Of course, we then engage with the employer until the matter is completed.
In 2019, The Employment Appeal Tribunal heard the case of Solomon v University of Hertfordshire.
Although the key principles to be decided were ones of discrimination and unfair dismissal, the Employment Appeal Tribunal did make the following comment in relation to fees for settlement agreements:
We wish to say a word about the offer of £500 to obtain legal advice. We think it clear that the advice which the Claimant could expect to receive for this would only relate to the terms and effect of the proposed settlement and its effect. Any advice as to the merits would require reading and consideration on a quite different scale.
It seems that a reasonable fee for a solicitor to advise on a settlement agreement may be well in excess of £500 if the solicitor is advising on the merits of a potential claim, especially where the employer is on notice. If the contribution from the employer is too low, we will always request an increase from the employer directly. Otherwise, where necessary, we may agree that you pay the difference.
For further advice on this or any other aspect of employment please contact us on 0113 350 5000 or email employment@winstonsolicitors.co.uk.
