Redmans help client negotiate increase of over £40,000 to their settlement agreement

Summary

How Chris Hadrill, a specialist employment solicitor, represented a client in in a redundancy situation and negotiated the client’s settlement agreement, helping the client to secure a settlement package of £70,000 (an increase of over £40,000). Chris also helped the client to secure other amendments to their settlement agreement.

Situation

Richard (not his real name) worked for a technology company for a number of years. In 2018 there Richard started to feel that he was being given too high a workload, and was being subjected to too much criticism by his line management, and he complained. After this complaint there was a breakdown in the relationship of trust and confidence between Richard and his employer.

Later in 2018 Richard’s employer approached him and asked whether he would be interested in being made redundant. Richard objected to the initial settlement agreement package that was put forward and his employer came back with an improved ex-gratia offer of £40,000. Richard sought advice from Chris Hadrill at Redmans and, following that advice, he negotiated an improved redundancy package of £70,000 (approx one years’ gross wages).

Richard also instructed Redmans to advise him on the settlement agreement that he had been offered by his employer  Chris Hadrill, the partner in the employment department at Redmans, advised Richard on his matter. In particular, and in addition to the financial package that had been agreed, Richard wanted to improve the outplacement support that he was being offered by his employer and increase the contribution that his employer was offering towards his legal fees.

What we did

Chris discussed Richard’s settlement agreement with him – he noted that Richard was keen to leave the business given the package that had been negotiated (and the previous problems Richard had been experiencing), and discussed with Richard that he felt that there were a few tweaks that needed to be made to the agreement to represent Richard’s best interests. Chris agreed a list of amendments to the settlement agreement with Richard and sought to negotiate these with his employer, representing him in the settlement agreement negotiations.

Chris also managed to persuade Richard’s employer to make the following amendments:

  • To extend the termination date (as well as Richard being placed on ‘garden leave’ to the termination date)
  • Outplacement support up to a value of £1,000 plus VAT
  • Legal fees contribution of over £1,000 plus VAT to cover off the entirety of the fees that Richard had incurred in seeking advice on the settlement agreement

The result

After a short period of negotiation, as detailed above, Richard’s employer agreed to extend the termination date. It was also agreed that the terms of the agreement – and the reason for Richard leaving his employer – would be covered by a mutual confidentiality clause, that both parties would agree to not say derogatory things about the other after the agreement was completed, and that Richard receive an agreed written reference from the business in the future. Chris also negotiated outplacement support and an increase to the legal fee coverage Richard’s employer was willing to pay.

Chris Hadrill, the specialist employment solicitor who dealt with Richard’s case, commented on the case: “Richard was very skilled in negotiating the settlement package after he had been advised by me on what he should be aiming for, and I was delighted to then step in and ensure that the settlement agreement terms best protected Richard’s interests.”

Please note that all of the names used for clients and third parties in this article and other articles are anonymised (unless expressly stated otherwise) to protect client confidentiality