Settlement agreements are legal documents drafted to agree the settlement of possible employment claims and provide a clean break. They are often, but not always, associated with the termination of employment. In order to be valid, the employee must receive advice from a solicitor or from another legally prescribed professional. Some employment claims can only be settled using a settlement agreement or through ACAS conciliation.
We set out below the fees we charge for advising on settlement agreements – all prices set out exclude VAT. Please note that employers normally pay a contribution towards the legal fees incurred by employees taking advice on settlement agreements. The settlement agreement should set out the value of this contribution. If the contribution is insufficient to cover the legal fees you will incur, you may be able to agree an increase with your employer or you can instead simply opt to pay the difference.
Review and advice for employee
£600 plus VAT (at a current rate of 20%) fixed fee if:
no restrictive covenants require negotiation or advice;
no advice is required on share options;
the financial package is agreed; and
no more than two versions of the document are entailed
Otherwise our time is charged applying our normal hourly rates. We estimate fees of £750 to £2,000 plus VAT (at a current rate of 20%) depending on complexity.
Standard reaffirmation for employee
A re-affirmation involves a second signing of the settlement agreement. Many settlement agreements do not require this, but those that do will typically involve a period of continuing employment after signing the settlement agreement but before the employment terminates. The wording of the document will show whether this is required. If you are looking at instructing us but you are unsure whether a re-affirmation is needed (with the associated fee), we can take a look for you.
£175 plus VAT (at a current rate of 20%) fixed fee
Drafting for employer
Our time is charged applying our normal hourly rates. We estimate fees of £850 to £1,250 plus VAT (at a current rate of 20%) depending on complexity.
Advice on the conduct of negotiations and subsequent amendments to the settlement agreement are charged applying our normal hourly rates. The fees will vary depending on the support you require and complexity of the case.