Redmans help client increase their settlement agreement offer by over £3,000


How Chris Hadrill, a specialist employment solicitor, represented a client in settlement agreement negotiations and secured the client an increase of over £3,000 when allegations were put to the client that they had engaged in misconduct in the workplace. Chris also helped the client to secure other amendments to their settlement agreement.


Melania (not her real name) worked for a nursery company for a number of years. She was approached by her employer and told that she was being accused of being disruptive in the workplace and lying. Melania disputed these allegations and sought legal advice. She instructed Redmans to negotiate her settlement agreement for her and Chris Hadrill, the partner in the employment department at Redmans, advised Melania on her matter. In particular, Melania wanted to negotiate the tax-free ex-gratia value of the package she was being offered and improve the reference she was being offered.

What we did

Chris discussed Melania’s concerns about the situation with her, as well as the requirements that she had for the amendment of the settlement agreement. Chris agreed a list of amendments with Melania and sought to negotiate these with her employer, representing her in the settlement agreement negotiations.

Chris negotiated a higher value of settlement agreement (an increase of £3,000 to the ex-gratia value that had initially been proposed) for Melania. Chris also managed to persuade Melania’s employer to amend the reference as Melania had requested, as well as securing a number of other improvements to the settlement agreement that Melania had requested. Finally, it was agreed that Melania’s employer would increase their coverage of legal fees under the settlement agreement so as to cover a large amount of the cost of Melania receiving legal advice.

The result

After a short period of negotiation, as detailed above, Melania’s employer agreed to increase the value of the tax-free ex-gratia sum of the settlement agreement by over £3,000 (a sum equal to approximately a month’s salary for Melania), to pay Melania out for her notice period and holiday, improve the reference as Melania had requested, and increase the value of the legal cost coverage that her employer was willing to pay. It was also agreed that the terms of the agreement – and the reason for Melania leaving her 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 Melania would receive an agreed written reference from the business in the future.

Chris Hadrill, the specialist employment solicitor who dealt with Melania’s case, commented on the case: “I was delighted to assist Melania in securing an improvement to the terms of her settlement agreement and, in particular, improving the nature of the reference that was to be provided and the value of the tax-free ex-gratia sum payable under the settlement agreement.”

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