Employment Law

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• In house training to protect against discrimination claims and help managers manage staff
• Document preparation and review service
• Drafting contracts, policies, handbooks
• Tribunal representation

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• Tax efficient remuneration planning and termination/compromise arrangements
• HR Plus – Employment Advice Support and Insurance Cover for Tribunals
• Advice and support for HR and line managers

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Employees

Mercy Solicitors provide representation and employment law advice for both employers and employees.

Our key areas of expertise in UK employment law include the following:

• Settlement agreements
• Unfair dismissal
• Constructive dismissal
• Wrongful dismissal
• Redundancy
• Discrimination based on disability, age, race, sex, religion or age
• Employment contracts

Mercy Solicitors have an up-front and honest policy regarding fees. In the initial meeting, we are usually able to assess the merits of your case and what costs you will likely incur. Once we have agreed to take your case, we will provide ongoing support, expert advice, and act on your behalf. We can also represent you at an employment tribunal or in the civil courts.

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Employers

We can assist you with any of the following common employment law issues:

• The ACAS Code of Practice – Disciplinary Hearings
• The ACAS Code of Practice – Grievance Hearings
• HR and Personnel advice
• Drafting/varying contracts of employment
• Disciplinary and dismissal procedures
• Grievance procedures
• Representation at Employment Tribunals
• Unfair dismissal claims
• Constructive dismissal claims
• Redundancy and redundancy procedures
• Discrimination
• Whistleblowing
• Maternity, paternity and parental issues
• Health and safety legislation

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Settlement Agreement

If your employer has offered you a Settlement Agreement and you are in need of Independent Legal Advice then you have come to the right place. At Mercy Solicitors we advise and negotiate Settlement Agreements for employees at all levels of seniority.

A Settlement Agreement (formally known as a Compromise Agreement prior to the Enterprise and Regulatory Reform Act 2013) is a legally binding agreement between employer and employee under which a financial offer is be made by an employer in return for an employee agreeing to settle their potential claim(s).

An employee will receive a severance payment, and very often an agreed reference, in return the employee agrees to waive their right to pursue a case at an Employment Tribunal or Court on the grounds covered by the agreement.

The employer will usually require the terms of the agreement to be confidential. However, the scope of this clause can be reduced to allow the employee to speak to those closest to them and be able to tell future employers about the circumstances of their previous employment.

A Settlement Agreement may also contain a clause preventing the employee from making derogatory comments against the employer. Such clause can be changed to prevent the employer from also denigrating the employee.

A Settlement Agreement is offered when the employer wishes to terminate a contract on terms mutually agreed with the employee. The terms of the agreement are mutually agreed so there is a clean break with no opportunity for the employee to make a claim against the employer at an Employment Tribunal.

Employers offer Settlement Agreements for a variety of reasons. One reason being, the employer may not wish to follow what could potentially be a long process, such as a performance review or a full redundancy process, before being able to terminate the employment. Another being, they may want to circumvent a claim for constructive dismissal and/or discrimination.

Validity of settlement agreement

• It must be in writing.
• It must relate to a particular compliant or proceeding (in other words, thought must be given, and be documented as having been given, to the possible claims that the employee will waive by signing the agreement).
• The employee must have received Independent Legal Advice from a relevant adviser.
• The employee’s adviser must be identified and have a current contract of insurance (or professional indemnity insurance) covering the risk of a potential claim against them by the employee for the advice.

Settlement Agreement Clauses

• Compensation for loss of employment. The basic tax position is that the first £30,000.00 can be paid without deductions for tax or NIC provided it is an ex-gratia payment(compensation for losing employment rather than contractual payment).
• Details with regards to working Notice.
• A contribution to legal fees. Your employer will usually pay your legal fees.
• It is normal for the employee to provide your employer with a tax indemnity as set out in the Agreement. The employee must be advised as to what tax they should expect to pay if HMRC challenges the payments under the agreement
• A list of potential claims that the employee agrees to settle.
• Imposition of restrictive covenants or modification of a covenant. Such clauses may prevent the employee working for a rival company.
• If the employee’s contract has no mention to payment in lieu of notice(PILON), then the employer may pay the Notice as a gross amount.
• Confidentiality Clause.
• Pension contributions should continue during the employees Notice unless the employment contract states otherwise. The employer may agree to pay a lump sum into the employee’s pension as part of the settlement terms.

What Mercy Solicitors can do for you?

• By signing the agreement, the employee gives up the right to bring an employment related claim against the employer. A specialist employment solicitor will provide Independent Legal Advice making sure the employee fully understands the agreement and consequence of signing the agreement. For the Agreement to be recognised in law a solicitor or adviser must sign off the agreement.
• Before signing the Agreement, a specialist employment solicitor will also advise on the merits of any potential claim the employee may have against the employer and the amount of money likely to receive at an Employment Tribunal.

The employer usually pays a contribution towards the employee’s legal fees. This can vary from £350 to £500 depending on the complexity of the issues. This is likely to cover all the employee’s legal fees in straightforward matters.

How can Mercy Solicitors help me?

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