Settlement agreement counter-offer template

When your employer offers you a settlement agreement you do not have to accept their offer. It may be a low settlement, or you may be concerned about the wording of a non-disclosure clause or how your employer’s proposed restrictive covenants might affect your chances of getting another job with a local business.  

It is not unreasonable to ask for more by making a counter-offer to your employer.

In this article, our expert settlement agreement solicitors answer your questions on settlement agreements.

Agreeing a settlement

Once you have agreed on a settlement and signed a settlement agreement, you cannot go back on your agreement if all the legal formalities have been complied with. That is why our team emphasise the importance of getting specialist legal advice on the terms and effect of the settlement agreement.   

It is also vital to bear in mind that the settlement on offer from your employer will settle all your claims (with some limited exceptions such as accrued pension rights and unknown future personal injury), so you cannot start a different type of employment law claim or say that your employer miscalculated certain payments in the settlement agreement.

Our solicitors understand that you need specialist legal advice to help you decide on whether to move forward with the settlement agreement.  

Making a counter-offer to your employer  

Whether you sign the settlement agreement is your decision based on what you think is right for you.

For those considering going to an employment tribunal it is not without risks, but that applies equally to your employer. They may not want to be tied up in tribunal proceedings and have the costs and potential adverse publicity if the tribunal is critical of work practices or policies.  

Settlement agreement counter offer templates

When your employer made their offer to settle, they may not have appreciated the full extent of the situation and your ability to either find work or return to employment.

When making a counter-offer, it is important to set out exactly what you want. You may consider breaking down a request into different areas, covering:

• Payment in lieu of notice.
• Payment for other salary losses, such as unpaid holiday leave, bonuses or commission payments you are contractually entitled to.  
• A compensation amount for your employment dispute. The amount will vary depending on a wide range of factors.
• Other matters such as an agreed reference or an agreement to release you from restrictive covenants you entered in your employment contract.
• Payment of legal costs for advice on the settlement agreement.

How much you ask for and the precise wording of the counter-offer will depend on the nature and extent of your employment dispute. This information is for general guidance only as we only advise on the terms and effect of a settlement agreement. 

Without prejudice and subject to the settlement agreement

There is no fixed template to making a settlement counter-offer. It is important to decide what factors are relevant to you.

Using the wrong wording can cause issues if you proceed to an employment tribunal. Getting the right wording protects you going forward.

Why choose Thompsons as your settlement agreement solicitors  

Years of experience in advising on settlement agreements makes Thompsons the solicitors of choice for many people presented with a settlement agreement by their employer. If you are feeling daunted by your employer’s perceived power, then having Thompsons on your side helps redress the balance.

We understand that when you are presented with a settlement agreement you want to take legal advice as quickly as possible, so you have the information you require to move forward. We provide expert legal advice delivered efficiently and without the use of unnecessary or complex legal jargon.

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