Dear Sir/Madam
Client care letter – Settlement Agreement Advice for Employees
This letter contains important information about my firm and how we will work together on finalising your Settlement Agreement. It is the basis of your contract with my firm.
1. Professional status and regulation
I qualified as a solicitor in 1993 (Roll no.160967). My firm is authorised and regulated by the Solicitors Regulation Authority (“SRA”) (reference no. 563689). SRA contact: http://www.sra.org.uk/consumers/consumers.page
2. Key dates
If you are thinking of bringing an Employment Tribunal claim, you must start the ACAS process within 3 months of dismissal or act complained of. If your employer has set a deadline for acceptance of the Agreement, please notify me in writing.
3. Standard Terms of a Settlement Agreement
I attach standard advice which applies to the majority of Settlement Agreements at Schedule 1. Please read this before we speak.
4. Settlement Agreements & my fee
An employee must have independent legal advice on a Settlement Agreement for it to be legally binding. Once signed you are prevented from bringing any claims to an Employment Tribunal against the Employer.
I will advise you on the Agreement on a ‘fixed fee’ basis. The fee is the amount which your employer has agreed to indemnify for you in the Agreement or a letter from your employer. A condition of this is that you will give me clear, succinct and reasonable instructions and follow my advice. Provided your employer pays my fee no later than 45 days (most pay within 28) you will not have to pay.
The fee covers:
- Advice on the Settlement Agreement terms
- Reasonable negotiations (normally up to five emails and five calls)
- The ‘fixed fee’ does not cover work such as:
- Enforcement of the Agreement
- Post termination issues such as return or collection of property/reputational issues
- Advice and assistance on other detailed documents or evidence
- Litigation or preparation of detailed legal arguments and review of evidence
- Unreasonable or disproportionate work such as pursuing objectives which are which a person paying privately would not be likely to pursue
- Detailed advice on post-termination restrictions in your contract of employment
5. Tax/Calculations of any payments
I will not be advising you on precise calculations of contractual payments such as notice or holiday so please check your payslip. If you want to challenge your employer’s calculations please notify me in writing and I will pass on your concerns.
I am not qualified to provide tax advice but generally, tax is not payable on the first £30,000 of any ‘compensation’ or ‘ex gratia’ payment provided it is non-contractual. Payment of certain disbursements and contributions by your employer to your pension can be made tax free but you should check this with your accountant, and you will be required to indemnify your employer for any tax issues if the HMRC disagrees. Employer pension contributions tend to be capped at £40,000.
6. Benefits of Settlement Agreements
Settlements offer many advantages over legal action such as: Tax efficiency (see above); Avoiding unrecoverable legal costs at tribunal; Quicker payment; Protection for your career and reputation; ‘Closure’ (peace of mind/avoiding stress); Avoiding ‘litigation risk’
and stress. The main remedy at tribunal is future lost earnings so to claim a larger award (in real net terms) you have to be (or establish that you might be) unemployed for a lengthy period.
If you are considering a potential claim, you need to assess the NET value of it against losing these advantages taking into account loss of these advantages.
7. Data Protection & your documents
My firm is registered with the Information Commissioner (Reg no. PZ283123X). Data on your file will be processed in accordance with the Data Protection Act 1998. If you want any documents back, please make sure you request these when the agreement is signed. I do not hold any original documents.
8. Insurance & limitations on liability
My firm carries professional indemnity insurance to the maximum sum of £2 million. It is unlikely that your claim will have a value above this upper level. By instructing my firm, you agree that the amount payable to you, in total, on any claim or linked series of claims, will not exceed the sum of £2 million. If you do not consider this amount to be adequate and require a higher limit of insurance, we may be able to purchase additional cover from our insurers, but this will be at an additional cost payable by you. You must notify me in writing if you want to discuss this. If a higher amount of insurance cover is required, I can refer you to larger firms or you can contact the Law Society ‘find a solicitor’ service. Details of our compulsory professional indemnity insurance are available on written request.
9. Money Laundering
I do not need ‘Know Your Client’ documentation (passport/utility bill) as your employer will pay you direct and legal costs are paid by your employer, so I don’t hold any client funds.
10. Contact details & opening hours
My mobile number is 07527 261 926 and can be used during opening hours- 9-5.
11. Client money held by my firm
In the unlikely event of any money being held by me on your behalf (other than money paid to discharge an invoice sent to you) this will be deposited in my Nat West client account and I will account to you for any interest on it where the amount of interest is more than £20.00. However, before taking any money on your behalf I would need relevant Anti Money Laundering evidence.
12. File storage
I don’t hold any original documents but if you want any papers returned, please let me know within seven days of the Settlement being signed.
13. Concerns, my invoices & the Legal Ombudsman
I am committed to providing high quality legal advice and client care. If you are unhappy about any aspect of the service you have received or about the bill, please contact me by email to This email address is being protected from spambots. You need JavaScript enabled to view it. heading your note ‘Complaint’ and setting out the following:
- The date when the problem occurred
- Key facts, in ‘bullet point’ format
- How you would like to resolve matters
I will acknowledge your complaint in writing, normally (except where I am abroad) within 7 working days. If I can resolve the complaint with you direct, I will record the outcome in writing.
If this is not possible and, if appropriate, your complaint will then be referred to an independent complaints handler for investigation. They will consider your heads of complaint, along with the available evidence to provide an objective view. They will do this within fourteen days.
If you are still not satisfied, the next step is for you to contact the Legal Ombudsman by the following methods:
Telephone: 0300 555 0333
Overseas: +44 12 245 3050
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
In writing: PO Box 15870, Birmingham, B30 9EB
Normally, you will need to bring a complaint to the Legal Ombudsman within six months of receiving a final written response from me about your complaint or within a year of the act or omission about which you are complaining occurring (or you becoming aware of it).
14. Acceptance
Further instruction of me will be treated as acceptance of these terms. I look forward to working with you.
Yours sincerely
Gordon Turner